Homework Answers
value of preferred stock = dividend / yield
a.original issue price =$8/0.12
=>$66.67.
b.current value = $8/0.09
=>$88.89.
C.The preferred stock price will increase.
Yield and stock price have an inverse relation.
Add Answer to:
North Pole Cruise Lines issued peeferred stock many years ago It camies a fixed dividend of...
X-Tech Company issued preferred stock many years ago. It carries a foed dividend of $6 per share. With the passage...
X-Tech Company issued preferred stock many years ago. It carries a foed dividend of $6 per share. With the passage of time, yields have soared from the original 8 percent to 13 percent yield is the same as required rate of retum) a. What was the original issue price? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Original issue price b. What is the current value of this preferred stock? (Do not round intermediate calculations. Round...
X-Tech Company issued preferred stock many years ago. It carries a fixed dividend of $14 per...
X-Tech Company issued preferred stock many years ago. It carries a fixed dividend of $14 per share. With the passage of time, yields have soared from the original 10 percent to 17 percent (yield is the same as required rate of return). a. What was the original issue price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the current value of this preferred stock? (Do not round intermediate calculations. Round your answer to...
10) Southside Flights issued preferred stock many years ago. It carries a fixed dividend of $10...
10) Southside Flights issued preferred stock many years ago. It carries a fixed dividend of $10 per share. The original yield to maturity was 4% but yields have soared and they are now at 13%. a. What was the original issue price? 1/49 =250 b. What is the current value of the preferred stock? /13%- b9 c. If the yield were to decline how will that impact the price of the preferred stock?
Tom Cruise Lines Inc. Issued bonds five years ago at $1000 per bond. These bonds had...
Tom Cruise Lines Inc. Issued bonds five years ago at $1000 per bond. These bonds had a 25- year life when issued and the annual interest payment was then 13 percent. This return was in line with the required returns by bondholders at that point as described below 5 l rate of inflation premiun Risk preniun Total returs 139 eBlook Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required retum...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life when issued and the annual interest payment was then 14 percent. This return was in line with the required returns by bondholders at that point as described below: Real rate of return Inflation premium Risk premium 3% 6 5 14% Total return Assume that five years later the inflation premium is only 2 percent and is appropriately reflected in the required...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual interest payment was then 15 percent. This return was in line with the required returns by bondholders at that point as described below: 5% Real rate of return Inflation premium Risk premium Total return 15% Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life when issued and the annual interest payment was then 15 percent. This return was in line with the required returns by bondholders at that point as described below: Real rate of return 5 % Inflation premium 6 Risk premium 4 Total return 15 % Assume that five years later the inflation premium is only 2 percent and is...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life when issued and the annual interest payment was then 14 percent. This return was in line with the required returns by bondholders at that point as described below: Real rate of return Inflation premium Risk premium Total return 38 6 5 148 Assume that five years later the inflation premium is only 2 percent and is appropriately reflected in the required...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual interest payment was then 14 percent. This return was in line with the required returns by bondholders at that point as described below: Real rate of return 3 % Inflation premium 6 Risk premium 5 Total return 14 % Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual interest payment was then 13 percent. This return was in line with the required returns by bondholders at that point as described below: Real rate of return 4 % Inflation premium 5 Risk premium 4 Total return 13 % Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in...
X-Tech Company issued preferred stock many years ago. It carries a foed dividend of $6 per share. With the passage of time, yields have soared from the original 8 percent to 13 percent yield is the same as required rate of retum) a. What was the original issue price? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Original issue price b. What is the current value of this preferred stock? (Do not round intermediate calculations. Round...
10) Southside Flights issued preferred stock many years ago. It carries a fixed dividend of $10 per share. The original yield to maturity was 4% but yields have soared and they are now at 13%. a. What was the original issue price? 1/49 =250 b. What is the current value of the preferred stock? /13%- b9 c. If the yield were to decline how will that impact the price of the preferred stock?
Tom Cruise Lines Inc. Issued bonds five years ago at $1000 per bond. These bonds had a 25- year life when issued and the annual interest payment was then 13 percent. This return was in line with the required returns by bondholders at that point as described below 5 l rate of inflation premiun Risk preniun Total returs 139 eBlook Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required retum...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life when issued and the annual interest payment was then 14 percent. This return was in line with the required returns by bondholders at that point as described below: Real rate of return Inflation premium Risk premium 3% 6 5 14% Total return Assume that five years later the inflation premium is only 2 percent and is appropriately reflected in the required...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 25-year life when issued and the annual interest payment was then 15 percent. This return was in line with the required returns by bondholders at that point as described below: 5% Real rate of return Inflation premium Risk premium Total return 15% Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or...
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 30-year life when issued and the annual interest payment was then 14 percent. This return was in line with the required returns by bondholders at that point as described below: Real rate of return Inflation premium Risk premium Total return 38 6 5 148 Assume that five years later the inflation premium is only 2 percent and is appropriately reflected in the required...
Most questions answered within 3 hours.
-
Humans have used horses for transportation for millions of
years. Therefore, they will use horses for...
asked 29 minutes ago -
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 1 hour ago -
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 1 hour ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 2 hours ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 2 hours ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 2 hours ago -
determine whether the vectors u=(1,2,3,), v=(-2,1,0) and
w=(1,0,1) are linearly dependent or independent.
asked 2 hours ago -
python
Define a function called print_values which takes a dictionary
object as a parameter. The function...
asked 3 hours ago -
In Chapter 1 you created a program named Triangle in
which you displayed a seven-line triangle...
asked 3 hours ago -
Research question: What are the differences between separately
stated and non separately stated transactions in an...
asked 3 hours ago -
By using Arduino write a code that connects two LEDs to two
push-buttons. Each button controls...
asked 4 hours ago -
Bank of America has bonds that pay a coupon interest rate of 5.5
percent and mature...
asked 5 hours ago