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New York University *
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Course
MISC
Subject
Finance
Date
Nov 24, 2024
Type
png
Pages
1
Uploaded by AgentEnergy11479
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
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