What is equivalent effective quarterly rate in percentage

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Q1. A company has stocks which costs $46.60 per share and will pay a dividend of $2.67 per share at the end of this year. The company's cost of equity is 12.40%. What is the expected annual growth rate in percentage of the company's dividends?

Q2. A company releases a five-year bond with a face value of $1000 and coupons paid semi-annually. If market interest rate imply a YTM of %9.31 with semi-annual compounding, what should be the coupon rate offered if the bond is to trade at par? Express the answer as an APR in percentage with semi-annual compounding.

Q3. You have been quoted a rate of 4.2% compounded semi-annually. What is the equivalent effective quarterly rate in percentage?

Q4. ABC Inc has preferred stock with a price of $28.64 and a dividend of $3.67 per year. What is the dividend yield in percentage?

Reference no: EM133071939

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