(Preferred stockholder expected return) You own 150 shares of Budd Corporation preferred stock at a market...

Question

Question

(Preferred stockholder expected return) You own 150 shares of Budd Corporation preferred stock at a market...

(Preferred stockholder expected return) You own 150 shares of Budd Corporation preferred stock at a market price of $21 per share. Budd pays dividends of $3.00.

What is your expected rate of return?

If you have a required rate of return of percent, should you sell your shares or buy more of the stock?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer : Calculation of Expected Return

Expected Return = Dividend / Market Price

= [3 / 21] * 100

= 14.285714285% or 14.29%

As the required return information is missing so please check whther expected return is more than required return or less than required return . If rexpected return is more than required return then buy shares. But if expected retrun is less than required return then sell shares.

Add a comment

Answer 2

Similar Homework Help Questions

(Preferred stockholder expected return) You own 150 shares of Dalton Resources preferred stock, which currently sells...

(Preferred stockholder expected return) You own 150 shares of Dalton Resources preferred stock, which currently sells for $47.35 per share and pays annual dividends of $4.75 per share. a. What is your expected return? 10.03 % b. If you require a return of 7 percent, given the current price, should you sell or buy more stock? If you require a return of percent, the value of the stock for you is $ 67.86. (round to the nearest cent.) Because the...
(Preferred stockholder expected return) You own 150 shares of Dalton Resources preferred stock, which currently sells...

(Preferred stockholder expected return) You own 150 shares of Dalton Resources preferred stock, which currently sells for $ 46.55 per share and pays annual dividends of $ 2.75 per share. a. What is your expected return? b. If you require a return of 6 percent, given the current price, should you sell or buy more stock? a. Your expected return is ____ percent.(Round to two decimal places.) b. If you require a return of 6 percent, the value of the...
Preferred stockholder expected return) You own 100 shares of Shapard Resources preferred stock, which currently sells...

Preferred stockholder expected return) You own 100 shares of Shapard Resources preferred stock, which currently sells for $37 per share and pays annual dividends of $5.25 per share. a. What is your expected return? b. If you require a return of 11 percent, given the current price, should you sell or buy more stock? a. Your expected return is nothing percent. (Round to two decimal places.)b. If you require a return of 11 percent, the value of the stock for...

(Preferred stockholder expected return) You own 200 shares of Shapard Resources preferred stock, which currently sells...

(Preferred stockholder expected return) You own 200 shares of Shapard Resources preferred stock, which currently sells for $38 per share and pays annual dividends of$4.50 per share. a. What is your expected return? b. If you require a return of 9 percent, given the current price, should you sell or buy more stock?
(Preferred stockholder expected return) You own 200 200 shares of Dalton Resources preferred stock, which currently...

(Preferred stockholder expected return) You own 200 200 shares of Dalton Resources preferred stock, which currently sells for $ 39.85 $39.85 per share and pays annual dividends of $ 2.25 $2.25 per share. a. What is your expected return? b. If you require a return of 11 11 percent, given the current price, should you sell or buy more stock?
(Preferred stockholder expected return) You own 100 shares of Dalton Resources preferred stock, which currently sells...

(Preferred stockholder expected return) You own 100 shares of Dalton Resources preferred stock, which currently sells for $46.06 per share and pays annual dividene of $3.25 per share. a. What is your expected return? b. If you require a return of7 percent, given the current price, should you sell or buy more stock? a. Your expected return is percent (Round to two decimal places) b. If you require a return of 7 percent, the value of the stock for you...

(Preferred stockholder expected retum) You own 300 shares of Dalton Resources preferred stock, which currently sells...

(Preferred stockholder expected retum) You own 300 shares of Dalton Resources preferred stock, which currently sells for $35.24 per share and pays annual dividends of $2.75 per share. a. What is your expected return? b. If you require a return of 11 percent, given the current price, should you sell or buy more stock? a. Your expected return is percent. (Round to two decimal places.)
(Preferred stock valuation) You own 300 shares of Somner Resources' preferred stock, which currently sells for...

(Preferred stock valuation) You own 300 shares of Somner Resources' preferred stock, which currently sells for $39 per share and pays annual dividends of $5.50 per share. If the market's required yield on similar shares is 12 percent, should you sell your shares or buy more? a. The value of the stock to you is $ per share. (Round to the nearest cent.) b. Should you sell your shares or buy more? (Select from the drop-down menus.) You because the...
expected refum) You own 100 shares of Shapard Resources preferred stock, which currently sels for $45...

expected refum) You own 100 shares of Shapard Resources preferred stock, which currently sels for $45 per share and pays annual dridends of $4.75 per share a. What is your expected retum? b. If you require a return of 8 percent, given the current price, should you sell or buy more stock? a. Your expected return is percent (Round to two decimal places)

(Preferred stock expected return) You are considering the purchase of 150 150 shares of preferred stock....

(Preferred stock expected return) You are considering the purchase of 150 150 shares of preferred stock. Your required return is 11 11 percent. If the stock is currently selling for $ 35 35 and pays a dividend of $ 4.50 4.50, should you purchase the stock? a. What is the expected rate of return of the stock?

(Preferred stockholder expected return) You own 150 shares of Budd Corporation preferred stock at a market...

Homework Answers

Add Answer to:
(Preferred stockholder expected return) You own 150 shares of Budd Corporation preferred stock at a market...

Post as a guest

Earn Coins

(Preferred stockholder expected return) You own 150 shares of Dalton Resources preferred stock, which currently sells...

(Preferred stockholder expected return) You own 150 shares of Dalton Resources preferred stock, which currently sells...

Preferred stockholder expected return) You own 100 shares of Shapard Resources preferred stock, which currently sells...

(Preferred stockholder expected return) You own 200 shares of Shapard Resources preferred stock, which currently sells...

(Preferred stockholder expected return) You own 200 200 shares of Dalton Resources preferred stock, which currently...

(Preferred stockholder expected return) You own 100 shares of Dalton Resources preferred stock, which currently sells...

(Preferred stockholder expected retum) You own 300 shares of Dalton Resources preferred stock, which currently sells...

(Preferred stock valuation) You own 300 shares of Somner Resources' preferred stock, which currently sells for...

expected refum) You own 100 shares of Shapard Resources preferred stock, which currently sels for $45...

(Preferred stock expected return) You are considering the purchase of 150 150 shares of preferred stock....

​(Preferred stockholder expected return​) You own 150 shares of Budd Corporation preferred stock at a market...

Homework Answers