Screenshot 2023-12-01 101911

png

School

New York University *

*We aren’t endorsed by this school

Course

MISC

Subject

Finance

Date

Nov 24, 2024

Type

png

Pages

1

Uploaded by AgentEnergy11479

Report
19. The market price of a share of preferred stock is $20.57 and the dividend is $2.11. What discount rate did the market use to value the stock? o p,==;2.11/20.57 =10.26% 20. The market price of a share of preferred stock is $36.38. The market uses a discount rate of 7.95%. What is the dividend? 0795 (36.38) = -o=-0795 o 21. Caspian Sea is considering raising $19 million by issuing preferred stock. They believe the market will use a discount rate of 11.71% to value the preferred stock which will pay a dividend of $4.02. How many shares will they need to issue? D 402 _ C19m °© PoTTR 1172 —34.3,—34.3 = 553,930.35 22. Afirm will pay a dividend of $2.7 next year. The dividend is expected to grow at a constant rate of 4.16% forever and the required rate of return is 14.17%. What is the value of the stock? D1 . 2.7 _ ° T 1417 0416 2097 23. Afirm just paid a dividend of $3.27. The dividend is expected to grow at a constant rate of 3.34% forever and the required rate of return is 14.33%. What is the value of the stock? _D,(A+9) 327x1.0334 7 PoTTTR—g ' .1433-.0334 = 30.75
Discover more documents: Sign up today!
Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help