What is the stock required rate of return

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1. Encino Burger incorporated has preferred stock outstanding that pays dividend of $1 at the end of each year. The preferred sells for $16 a share. What is the stock's required rate of return?

2. You are offered an opportunity to purchase a bond with 4% annual coupon rate and 19 years remaining until maturity. The coupons are paid semiannually. With 6.9% yield-to-maturity in mind, what is the price of the bond?

3. A 12-year bond has a 2.7% yield to maturity and is currently priced at $1075. The coupons of the bond are paid semiannually. What is the annual coupon rate on the bond?

Reference no: EM131993099

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