X-Centric Energy Company has issued perpetual preferred stock with a stated (par) value of 195 and...

Question

Question

Answer 1

Answer #1

Stocks current market price is = Dividend/Required rate of return Stocks current market price is = ((195*4.50%)/8.30%) Stocks

Answer 2

Similar Homework Help Questions

X-Centric Energy Company has issued perpetual preferred stock with a stated (par) value of 195 and...

X-Centric Energy Company has issued perpetual preferred stock with a stated (par) value of 195 and a dividend of 5.5 percent. If the required rate of return is 10.6 percent, what is the stock’s current market price?
Moriband Corp. paid a dividend of $2.15 yesterday. The company's dividend is expected to grow at a steady rate of 5 perc...

Moriband Corp. paid a dividend of $2.15 yesterday. The company's dividend is expected to grow at a steady rate of 5 percent for the foreseeable future. If investors in stocks of companies like Moriband require a rate of return of 15 percent, what should be the market price of Moriband stock? X-Centric Energy Company has issued perpetual preferred stock with a stated (par) value of $100 and a dividend of 4.5 percent. If the required rate of return is 8.25...
The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The...

The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.65 on this stock. What is the current price of this preferred stock given a required rate of return of 11.6 percent? (Round answer to 2 decimal places, e.g. 15.25.) Current price

What would be the expected rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 9 p...

What would be the expected rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 9 percent of par, and a current market price of $70? a. 9.00% b. 12.86% c. 12.02% d. 6.30% e. 14.19%
What will be the nominal rate of return on a perpetual preferred stock with a $100...

What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 10% of par, and a current market price of (a) $53, (b) $88, (c) $97, and (d) $137? Round your answers to two decimal places. % % d. A stock is expected to pay a dividend of $2.50 at the end of the year (i.e., D1 = $2.50), and it should continue to grow at a constant rate...
Your answer is incorrect The First Bank of Flagstaff has issued perpetual preferred stock with a...

Your answer is incorrect The First Bank of Flagstaff has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.80 on this stock. What is the current price of this preferred stock given a required rate of return of 9.0 percent? (Round answer to 2 decimal places, e.g. 15.25.) Current price $ eTextbook and Media

8) Natal Corp. has issued some $100 par preferred stock with a dividend of 10% of...

8) Natal Corp. has issued some $100 par preferred stock with a dividend of 10% of par value. The required rate of return on the preferred stock is 9%. a) Compute the current value of the preferred stock. b) If the preferred stock sells in the market at $115 per share, what is the expected rate of return from the preferred stock. c) If Natal announces that it will redeem the preferred stock in 4 years at a redemption price...
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 11%...

What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 11% of par, and a current market price of (a) $62, (b) $86, (c) $103, and (d) $138? Round your answers to two decimal places. a. % %
9.7/9.8 Earley Corporation issued perpetual preferred stock with a 12% annual dividend. The stock currently yields...

9.7/9.8 Earley Corporation issued perpetual preferred stock with a 12% annual dividend. The stock currently yields 7%, and its par value is $100. Round your answers to the nearest cent. a. What is the stock's value? b. Suppose interest rates rise and pull the preferred stock's yield up to 14%. What is its new market value? $ Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $3.00 and its...

9.08/9.9/9.10 Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays...

9.08/9.9/9.10 Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $3.00 and its current price is $124. a. What is its nominal annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % b. What is its effective annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. Maxwell Mining Company's ore reserves are being depleted, so...