What is the required rate of return for the company stock

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1.What is the value of a preferred stock where the dividend rate is 14 percent on a $100 par value, and the market’s required yield on similar shares is 12%?

2. A company is currently valued at $10.40 per share. It pays annual dividends at an increasing rate of 2.5% annually, and next year’s dividend is anticipated to be $1.05. What is the required rate of return for the company’s stock?

3. Micah buys a new car for ?$14,000. She makes a down payment of ?$1,000 and the dealer gives herher an? add-on loan, charging herher an annual interest rate of 8.3?%. If he takes out a 55?-year ?loan, what will Micah's monthly payments? be?

Reference no: EM131964498

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