4. Consider JMJ Corp 6% $100 par value cumulative preferred stock. The current market price of the stock is $120 per share. What is the market rate of return implicit in that price?
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- Share commom stock dividend is $1.00 , g=5.4 and required return is 11.4%, What is the stock price?What is the current price of a share of stock when the current dividend is P4.75, the growth rate is 7%, and the investor's required rate of return is 11%? A. P118.75 B. P 43.16 C. P 46.20 D. P127.06BASIC (Questions 1-18) 1. Calculating Returns Suppose a stock had an initial price of $87 per share, paid a dividend of $2.15 per share during the year, and had an ending share price of $98. Compute the percentage total return. What was the dividend yield? The capital gains yield? LO 1
- Determine the cost of common stock (equity). The T-Bill rate is 5.2%. The Market Return is 12.7%. What is the company's cost of equity capital if the company has a beta of 1.27? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %The preferred stock of Axim Corp. is currently selling at $51.07. If the required rate of return is 11.7 percent, what is the dividend paid by this stock? (Round answer to 2 decimal places, e.g. 15.25.) Dividend paid $ ________q3. Assume Firm ABC has expected earnings per share (EPS) of $0.43, and the industry’s P/E ratio is 18. What is the intrinsic value of the stock? Show all work.
- What is the rate of return on a preferred stock that has a par value of $50, a market price of $46.50, and a dividend of $4.10? A) 8.20% B) 11.34% C) 8.82% D) 12.20%What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 7% of par, and a current market price of (a) $51, (b) $89, (c) $109, and (d) $137? Round your answers to two decimal places. a % b % c % d %determine the market value of a stock if D=3.00, K=13%, G=6%
- 1. If the required rate of return is 5 percent and the stock pays a fixed S5 dividend, its value is • A. $100 • B. $75 • C. S10 • D. $50 2.The P/E ratio is determined by • A. The required rate of return. • B. The expected dividend payout ratio. • C. The expected growth rate of dividends. • D. Choices a and b • E. All of the above3. Rural Bank declared a dividend of P27 per share for the common stocks. If the common stock closes at P93, how large is the stock yield ratio on this investment? * Your answerCalculate the value of preferred stock given: Dividend Payment (D) is $10 and Capitalization Rate (K) is 7%. 142.68 or 442.86
