What price would sell for now if the investor required

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Problem 1: Consider an 8 year, 10% preference stock with a par value of $1 000. The required return is 9%. What is the value of the preference stock?

Problem 2: Cornet's equity share is expected to provide a dividend of $2,00 and fetch a price of $18,00 a year hence. What price would it sell for now if the investor's required rate of return is 12%?

Reference no: EM132950474

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