What should the price of preferred stock

Assignment Help Financial Management

Reference no: EM131855658

1. What should the price of a preferred stock be if it pays a dividend of $2.52 per year and has a required rate of return of 9.9%? Your answer should be to 2 decimal places. Don't include a "$" sign in your answer.

2. The most recent dividend (assume it was just paid) for New Zealand Telecom was $1.51 per share. This dividend is expected to grow at a rate of 4.5% per year indefinitely. What will the dividend be in 4 years? You should round the answer to four decimal places. Don't put a dollar sign in the answer.

Reference no: EM131855658

Questions Cloud

What are the after-tax proceeds from the sale : what are the after-tax proceeds from the sale, assuming your tax rate is 34%?

How much interest on interest was earned : An account was opened with $2,000 10 years ago. If the account paid interest compounded annually, how much interest on interest was earned?

Calculate ideko unlevered cost of capital : Calculate Ideko's unlevered cost of capital when Ideko's unlevered beta is 1.16, the risk-free rate of return is 4.63 percent.

What is estimated price of stock with dividend to be paid : What is the estimated price of a stock with a dividend to be paid in 1 year of $3.33 and a growth rate of -6%? Assume the discount rate is 10.5%

What should the price of preferred stock : What should the price of a preferred stock be if it pays a dividend of $2.52 per year and has a required rate of return of 9.9%?

Assume extra reserve payment cash goes towards loan : By how much does she shorten term of loan if she increases each payment to 135% of current value (assume extra reserve payment cash goes towards loan)

What is the dividend yield on stock : What is the dividend yield on a stock that costs $25.50, pays a dividend of $1.66 over the next year and has an expected return of 13%?

Determine manually by trial and error and rate of return : Determine manually, by trial and error, Lucinda’s rate of return, if she owns the house for 6 months.

Why do the differences in the PVs occur : Find the present value of $500 due in the future under each of these conditions: Why do the differences in the PVs occur?

User Account

All Pages