A preferred stock with a par value of $100.00 provides a $6.00 dividend each year. The current market value is $120. Calculate the cost of preferred stock. a. b. C. d. 7% 5% 10% 12%
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- Valuation of Preferred Stock Beart Inc. issued preferred stock with a par value of $100 and an annual dividend rate of 8%. What is the value of this stock if the required return is: 5% 8% 12% What relationship do you see between price and required return? a. b. C. d.Springtime Inc. has a perpetual preferred stock that pays a $9 per year dividend. The required rate of return on the preferred stock is 9%. What is the intrinsic value of a share of the preferred stock? a. $100 b. $90 c. $120 d. $85A preferred share of stock pays dividends of $270 per year, and the required rate of return for the stock is 30%. what is the value of this preferred stock? Select one: a. 900 O b. 800 O c. 700 O d. 81
- LUCELEC’s preferred shares pay a dividend of $4.50. What is the value of the stock if your required rate of return is 10 percent? Select one: a. $55.00 b. $45.00 c. $45.50 d. $22.22 e. $25.00Calculate the value of preferred stock given: Dividend Payment (D) is $10 and Capitalization Rate (K) is 7%. 142.68 or 442.86A preferred stock from Hecla Mining Co. (HLPRB) pays $5.00 in annual dividends. If the required return on the preferred stock is 8.00 percent, what is the value of the stock? (Round your answer to 2 decimal places.)
- A perpetual preferred stock pays a $1.65 annual dividend and has a required return of 5.81%. The value is closest to A. $28.40. B. $31.33. C. $33.79. D. $36.55.A preferred stock from Duquesne Light Company (DQUPRA) pays $3.55 in annual dividends.If the required return on the preferred stock is 6.7 percent, what’s the value of the stock? (Round your answer to 2 decimal places.)Cost of preferred stock Determine the cost for the following preferred stock. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Par value $80.00 Sale price $76.00 Flotation cost Annual dividend $5.60 9% The cost of preferred stock is %. (Round to two decimal places.)
- A preferred stock from Duquesne Light Company (DQUPRA) pays $2.50 in annual dividends. If the required return on the preferred stock is 5.40 percent, what's the value of the stock? (Round your answer to 2 decimal places.)Cost of preferred stock Determine the cost for the following preferred stock. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Par value Sale price Flotation cost Annual dividend $80.00 $72.80 $4.80 11% The cost of preferred stock is %. (Round to two decimal places.)What is the annual dividend on 6% preferred stock, assuming a par value of $100? (Round to the nearest cent and do not enter a dollar sign)
