What is the current price of preferred stock of flagstaff

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Problem 1: The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.65 on this stock. What is the current price of this preferred stock given a required rate of return of 10.0 percent? (Round answer to 2 decimal places, e.g. 15.25.)

Problem 2: George Robinson is interested in purchasing the common stock of Oriole, Inc., which is currently priced at $42.28. The company is expected to pay a dividend of $2.58 next year and to increase its dividend at a constant rate of 7.75 percent. What should the market value of the stock be if the required rate of return is 14 percent? (Round answer to 2 decimal places, e.g. 15.20.)

Reference no: EM132917496

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