1) Valuation
– preferred stock
What is the value of a share of preferred stock that pays a $4.50 dividend,
assume k is 10%.
2) A share of stock
is currently selling for $31.80. If the anticipated constant growth rate for
dividends is 6% and investors are seeking a 16% return, what is the dividend
just paid?
3)
Charlie Company is expected to grow at an annual rate of 6%
indefinitely. The return on similar stocks is currently 11%. Charlie’s board of
directors declared a dividend of $1.85 yesterday. What should a share of
Charlie Company sell for?
4) Valuation – zero-coupon bond
A U.S. Government bond with a face amount of $10,000 with 13 years to maturity
is yielding 5.5%. What is the current selling price?
5) A $1000 par value convertible bond has a conversion price
of $50. It is currently selling for $1,120 despite the fact that the bond’s
coupon rate and the market rate are equal. The common stock obtained upon
conversion is selling for $54 per share. What is the convertible bond’s
conversion premium?
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How it Works
- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.