What is the value of the stock for investor

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Reference no: EM132530831

XYZ Preferred Stock sells for $ 45 and pays $ 2 in dividends. What is your expected rate of return if you buy the stock at the market price.

Suppose you own 200 preferred shares of XYZ Inc., which currently sell for $ 50 each and pay $ 5.40 of dividends per share. Determine:

A- Expected rate of return?

b. If you require an 8% yield, given the market price. What is the value of the share?

XYZ preferred shares sell for $ 35 each on the market and pay an annual dividend per share of $ 4.60. Determine:

A' The expected rate of return.

b. If the investor's required rate of return is 10%, what is the value of the stock for that investor?

1. You have a 20-year bond with an even value of $ 1,000 paying 6% annually. The market price of the bond is $ 875, and your required rate of return is 10%. 

Determine.

A. The value of the bond to you, given your required rate of return

Reference no: EM132530831

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