What is the required return on the stock

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1. An investor purchases a mutual fund for $75. The fund pays dividends of $3.50, distributes a capital gain of $4, and charges a fee of $4 when the fund is sold one year later for $77.50. What is the net rate of return from this investment?

Rate of return %

2. Kaes Power Company promises to maintain dividends of $5.00 per share on its preferred stock, indefinitely. The stock currently sells at $37.50 per share. What is the required return on the stock?

3. In not more than (1) Single-space page, list and describe, in sufficient detail, the determinants of the market interest rate with respect to a bond.

Reference no: EM132062170

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