Help me choose the correct answer...?
shahimermaid (Not rated)
(Not rated)
1. Positive Tronics Industries preferred stock has a par value of $100 and pays a dividend of $6.00 per share. It presently sells for $87 per share. What do investors require as a rate of return on this stock? Round off to the nearest .10%. (Points : 1)
14.5%
9.3%
6.9%
6.0%
2. What is the value of a preferred stock that pays a $4.50 dividend to an investor with a required rate of return of 10%? (Points : 1)
$22.22
$27.83
$45
$55.50
3. H. J. Corp. common stock paid $2.50 in dividends last year (D0). Dividends are expected to grow at a 12-percent annual rate forever. If H. J.'s current market price is $40.00, what is the stock's expected rate of return (nearest .01 percent)? (Points : 1)
5.50%
11.00%
18.25%
19.00%
- 13 years ago
the options are given against each question
NOT RATED
Purchase the answer to view it