Value of a Preferred Stock If a preferred stock from Pfizer Inc. (PFE) pays $6.00 in...
Value of a Preferred Stock If a preferred stock from Pfizer Inc. (PFE) pays $6.00 in annual dividends, and the required return on the preferred stock is 11.00 percent, what's the value of the stock?
Multiple Choice
-
$.55
-
$66.00
-
$.66
-
$54.55
Homework Answers
value of the stock=annual dividend/required rate
=6/0.11
which is equal to
=$54.55(Approx).
Add Answer to:
Value of a Preferred Stock If a preferred stock
from Pfizer Inc. (PFE) pays $6.00 in...
Value of a Preferred Stock If a preferred stock from Ecology and Environment, Inc. (EEI) pays...
Value of a Preferred Stock If a preferred stock from Ecology and Environment, Inc. (EEI) pays $6.50 in annual dividends, and the required return on the preferred stock is 6.20 percent, what's the value of the stock?
A preferred stock from Duquesne Light Company (DQUPRA) pays $230 in annual dividends.
A preferred stock from Duquesne Light Company (DQUPRA) pays $230 in annual dividends. If the required return on the preferred stock is 5.20 percent, what's the value of the stock?
A preferred stock from Duquesne Light Company (DQUPRA) pays $4.00 in annual dividends.
A preferred stock from Duquesne Light Company (DQUPRA) pays $4.00 in annual dividends. If the required return on the preferred stock is 6.90 percent, what's the value of the stock? (Round your answer to 2 decimal places.)
Question 36 (Mandatory) (0.5 points) At your full-service brokerage firm, it costs $120 per stock trade....
Question 36 (Mandatory) (0.5 points) At your full-service brokerage firm, it costs $120 per stock trade. How much money do you receive after selling 200 shares of Ralph Lauren (RL), which trades at $85.13? $16,906.00 $16,546.00 $17,026.00 $17,146.00 Question 37 (Mandatory) (0.5 points) You would like to sell 400 shares of International Business Machines (IBM). The current bid and ask quotes are $96.24 and $96.17, respectively. You place a limit sell-order at $96.20. If the trade executes, how much money...
What is the value of a preferred stock when the dividend rate is 16 percent on a $75 par value?
Problem 8-1(Preferred stock valuation) What is the value of a preferred stock when the dividend rate is 16 percent on a $75 par value? The appropriate discount rate for a stock of this risk level is 14 percent. The value of the preferred stock is _______ . (Round to the nearest cent.)(Preferred stock valuation) The preferred stock of Gandt Corporation pays a $0.50 dividend. What is the value of the stock if your required return is 11 percent? The value of the...
4. The preferred stock of You Corp pays a $3.75 dividend. What is the value of...
4. The preferred stock of You Corp pays a $3.75 dividend. What is the value of the stock of your required return is 8.5%? Look at valuation for preferred stock 5. You are looking to invest in a company that has 10.5% return on equity and retains 60% of its earnings for reinvestment purposes. The company recently paid a dividend of $3.75 and the stock is currently selling for $45. Look at valuation for common stock A) What is the...
ZZZ-Best, Inc. recently issued $65 par value preferred stock that pays an annual dividend of $17....
ZZZ-Best, Inc. recently issued $65 par value preferred stock that pays an annual dividend of $17. If the stock is currently selling for $76, what is the expected return of this preferred stock? 22.37% 22.94% 0 24.42% O 20.27% O 22.60% Your broker has recommended that you purchase stock in National Bank & Trust, Inc. National Bank & Trust recently paid its annual dividend of $5. Dividends have consistently grown at a rate of 3.1%. Based on your analysis, you...
Big Oil, Inc. has a preferred stock outstanding that pays a $5 annual dividend. If investors’...
Big Oil, Inc. has a preferred stock outstanding that pays a $5 annual dividend. If investors’ required rate of return is 5 percent, what is the market value of the shares? Round your answer to the nearest cent. $ _____ If the required return declines to 2 percent, what is the change in the price of the stock? Round your answer to the nearest cent. The price____ (increases or decreases) by $ _____
5 P&G issues preferred stock that pays an annual dividend of $2.75. If we use a...
5 P&G issues preferred stock that pays an annual dividend of $2.75. If we use a required rate of return of 6.25%, value this preferred stock. a 66.00 b 44.00 C 22.00 d 11.00 6 The New York Stock Exchange a is built with a giant wall around it, that's why they call it Wall Street b has only 500 exchange members who own seats C is an electronic market like NASDAQ d is both an electronic market, and face-to-face...
1. Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If...
1. Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors' required rate of return is 10 percent, what is the market value of the shares? If the required return declines to 6 percent, what is the change in the price of the stock? 2. What should be the prices of the following preferred stocks if comparable securities yield 7 percent? Why are the valuations different? a. MN, Inc., $8 preferred ($100 par) b....
Question 36 (Mandatory) (0.5 points) At your full-service brokerage firm, it costs $120 per stock trade. How much money do you receive after selling 200 shares of Ralph Lauren (RL), which trades at $85.13? $16,906.00 $16,546.00 $17,026.00 $17,146.00 Question 37 (Mandatory) (0.5 points) You would like to sell 400 shares of International Business Machines (IBM). The current bid and ask quotes are $96.24 and $96.17, respectively. You place a limit sell-order at $96.20. If the trade executes, how much money...
4. The preferred stock of You Corp pays a $3.75 dividend. What is the value of the stock of your required return is 8.5%? Look at valuation for preferred stock 5. You are looking to invest in a company that has 10.5% return on equity and retains 60% of its earnings for reinvestment purposes. The company recently paid a dividend of $3.75 and the stock is currently selling for $45. Look at valuation for common stock A) What is the...
ZZZ-Best, Inc. recently issued $65 par value preferred stock that pays an annual dividend of $17. If the stock is currently selling for $76, what is the expected return of this preferred stock? 22.37% 22.94% 0 24.42% O 20.27% O 22.60% Your broker has recommended that you purchase stock in National Bank & Trust, Inc. National Bank & Trust recently paid its annual dividend of $5. Dividends have consistently grown at a rate of 3.1%. Based on your analysis, you...
5 P&G issues preferred stock that pays an annual dividend of $2.75. If we use a required rate of return of 6.25%, value this preferred stock. a 66.00 b 44.00 C 22.00 d 11.00 6 The New York Stock Exchange a is built with a giant wall around it, that's why they call it Wall Street b has only 500 exchange members who own seats C is an electronic market like NASDAQ d is both an electronic market, and face-to-face...
1. Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors' required rate of return is 10 percent, what is the market value of the shares? If the required return declines to 6 percent, what is the change in the price of the stock? 2. What should be the prices of the following preferred stocks if comparable securities yield 7 percent? Why are the valuations different? a. MN, Inc., $8 preferred ($100 par) b....
Most questions answered within 3 hours.
-
The correct answer will be upvoted with positive feedback,
giving me incorrect answers will result in...
asked 9 minutes ago -
Question:
Evaluation: Answer both (a) and (b): (a) Looking at
Table 6.1 in our text, explain...
asked 18 minutes ago -
What is the maximum number of edges that a graph on 7 vertices can
have if...
asked 39 minutes ago -
Question 05
(a) i) What are the three type of general defects in welding?
ii) Explain...
asked 24 minutes ago -
If the wage rate increases from $12 to $16 and, as a result, the
quantity demanded...
asked 30 minutes ago -
the slime layer external to the prokaryotic cell wall is called
the ?
asked 38 minutes ago -
Cheyenne Company must decide whether to make or buy some of its
components. The costs of...
asked 40 minutes ago -
What is the entropy change for mixing 1 liter of a monoatomic
ideal gas (call it...
asked 38 minutes ago -
A company that has 150 employees chooses a committee of 11 to
represent employee retirement issues....
asked 1 hour ago -
the
force between two 2.11 x 10^-4 C charges that are 2.11 meters apart
is ______N?
asked 1 hour ago -
A truck of mass m slows from speed v0 to speed v in a
time t....
asked 1 hour ago -
A 60kg box rests on a floor with a coefficient of kinetic
friction of 0.600 and...
asked 59 minutes ago