Financial Management

Please show all work

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?

Valuation - preferred stock  What is the value of a share of preferred stock that pays a $4.50 dividend, assume k is 10%.

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?

Valuation – corporate bond  A $1,000 corporate bond with 20 years to maturity pays a coupon of 7% (semi-annual) and the market required rate of return is a) 6.6% b) 13%. What is the current selling price for a) and b)?

Valuation - preferred stock  What is the value of a share of preferred stock that pays a $9.50 dividend, assume k is 12%.

Go to www.cnbc.com and explore the video tab by using several different key terms such as stock pricing, stock valuation, bond prices, etc. Watch at least one video, list the video you viewed, and provide a summary of the type of information that the video contained and how it relates to the models, variables and the process of valuation.