the rest of it please Preferred Products has issued preferred stock with an annual dividend of $7.26 that will...

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Preferred Products has issued preferred stock with an annual dividend of $7.26 that will be paid in perpetulty. a. If the dis

Expected dividend growth rates 6.00 % 2.61 % c. What is the proper stock price for each firm? (Do not round intermediate calc

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Answer 1

Answer #1

a. Current Price =Annual Dividend/Discount rate =7.26/11% =66

b. Price on year from now =Annual Dividend/Discount rate =7.26/11% =66

c.Dividend Yield =7.26/66 =11%
Capital gain =0%
Expected rate of return =Dividend Yield+Capital Gain =11%+0%=11%

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Answer 2

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