1. Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If...

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1. Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors required rate of return is 1

Answer 1

Answer #1

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Please find below the answer
Statementshowing Computations
Paticulars	Amount
Q1
Annual Dividend	7.00
Required rate	10%
Market Value = 7/10%	70.00

Required rate	6%
Market Value = 7/6%	116.67

Answer 2

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