f Muscat Tiles has the cost of preferred stock 10.8%, the stated dividend is 20 and floatation cost is 5% , then what is the has preferred stock market price? Select one: a. 199.17 b. 197.17 c. 194.17 d. None
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- b) Cohen and Company Limited (CAC) preferred stocks on the market, each with a par value of $90. The stocks have dividends and yield as presented in has three the table below. Name Dividends Yield Series X 8.0% 10.5% Series Y 7.2% 9.8% Series Z 6.5% 11.1% Calculate the price for each of the three preferred stocks?Question content area top Part 1 (Preferred stock valuation) What is the value of a preferred stock where the dividend rate is 13 percent on a $100 par value, and the market's required yield on similar shares is 9 percent? Question content area bottom Part 1 The value of the preferred stock is $enter your response here per share. (Round to the nearest cent.)Consider the three stocks in the following table. Pt represents price at time t, Qt represents shares outstanding at time t. Stock C splits two for one in the second period from t=1 to t=2. Calculate the rate of return on a price-weighted index consisting of the three stocks for the first period from t=0 to t=1. Answer in percentage. Stock P0 Q0 P1 Q1 P2 Q2 A 70 475 75 475 75 475 B 45 850 40 850 40 850 C 50 300 60 300 30 600 a. 0.00% b. 2.49% c. 6.06% d. 8.95% e. 1.30%
- Could you walk through the steps of finding the market value weighted index? Company C had a 2 for 1 stock split in P2 Initial Price Orig. Shares outstanding Price year 1 Shares outstanding year 1 Price year 2 Shares outstanding year 2 Apple 90 100 95 100 95 100 Bacon 50 200 45 200 45 200 Cheddar 100 200 110 200 55 400Consider the three stocks in the following table. P(t) represents price at time t, and Q(t) represents shares outstanding at time t. Stock C splits two-for-one in the last period. What is the rate of return for the price-weighted index that is formed using Stocks A, B, and C from time period 1 to time period 2? B C zero P(1) 95 45 100 -20.83% 20.83% None of the above Q(1) 100 200 200 P(2) 95 45 50 Q(2) 100 200 400D. 7.69 percent E 8.26 percent 16. An increase in which of the following would increase the price of a call option on common stock, all else equal? L Stock price I1. Stock price volatility IIL. Interest rates IV. Exercise price A II only B. II and IV only C. I, II, and III only D. 1, 1IL and IV only E. I, II, III, and IV
- 3.1-3.3 Corporation A's stock has a price of $50 at t=0. It is expected to pay a dividend of $2 at t=1 and its expected price at t=1 but right after paying the dividend is $52. 3.1 What is this stock's expected current yield?- 3.2 What is this stock's expected capital gain rate?- 3.3 What is this stock's equity cost of capital?How do I calculate preferred stock and common stock when: 1. preferred stock nonparticipating/cumulative 2. preferred stock participates up to 12% of its par value and is cumulative 3. preferred stock is fully participating and cumulative 4. preferred stock is nonparticipating and noncumulative?Tiempo restante U:28:23 What is the beta of a portfolio that has $18,400 in Stock M, $6,320 in Stock N, $32,900 in Stock O and $11,850 in Stock P. Their Betas are .97, 1.04, 1.23, and .88, respectivley? O a. 1.04 O b. 1.11 О с. 1.08 O d. 1.15 O e. .99
- A. What is the investor's required rate of return for Green Gadgets' stock? ________% (round to two decimal paces) B. Assuming that the investor's required rate of return for Green Gadget's stock does not change, what would you expect to happen to the price of its common stock if it cuts dividend to $3? $_______ (round to the nearest cent) C. Should Green Gadgeds cut its dividend? ( select from the drop down menus) Green Gadgets Should / Should not cut the dividend because cutting the dividend will increase / decrease the value of the common stock.Common versus Preferred Stock Suppose a company has a preferred stock issue and a common stock issue. Both have just paid a $2 dividend. Which do you think will have a higher price, a share of the preferred or a share of the common?Estimated rate of return for Stock shareholders A B Estimated price in T1 4 4 Estimated dividend in T1 0,2 12% 15% 0,5 Calculate, for both stocks, the equilibrium price in TO. With a market rate of return of 6% and a risk free rate of 1,5%, calculate the Beta of the two stocks. Which percentage of stock A and B should you buy in your portfolio so as to generate a rate of return of 13,25%? What would be the beta of this portfolio?
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