A company has preferred stock that pays a constant $2.8 per share dividend. If the stock's required return is 8.9%, how much should you be willing to pay for a share of the stock? Round your final answer to two decimal places (don't round intermediate calculations).

Q: If the required return is 12 percent and the company just paid a dividend of $2.80, what is the…

A: Share Price: It represents the current market value to buyers and to the seller. The share price…

Q: Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors’…

A: Preferred stock annual dividend (D)= $7 Required rate of return ( r ) = 10% Market value or price…

Q: A company has an outstanding issue of perpetual preferred stock with an annual dividend of $1.65 per…

A: The price of preferred stock is calculated as ratio of annual dividend and required return on stock.

Q: Torch Industries can issue perpetual preferred stock at a price of $69.50 a share. The stock would…

A: Those stocks which are prioritized over common stocks at the time of payment of dividends but did…

Q: he current stock pric

A: Given information : Dividend to be paid out = $5.90 Current price of stock = $40.90

Q: Everest Inc's preferred stock pays a dividend of $1.55 per quarter, and it sells the preferred stock…

A: Effective annual rate of dividend is calculated by considering the the dollar amount per share of…

Q: A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per…

A: Total rate of return is return that the investor gets on the stock. It is the sum of the Dividend…

Q: ebello's preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share.…

A: cost of preferred cost = dividend/ price effective annual rate of return =( 1+r)n-1 n is the no of…

Q: Achi Corp. has preferred stock with an annual dividend of $3. If the required return on Achi’s…

A: Preferred stock pay a fixed amount of dividend. When preferred stock keep paying perpetual dividend,…

Q: Suppose you know that a company’s stock currently sells for $54 per share and the required return on…

A: Current Stock price =$54 Required return = 9% Capital gain and dividend yield are equal Then,…

Q: Fegley, Incorporated, has an issue of preferred stock outstanding that pays a $3.80 dividend every…

A: Dividend Discount Model (DDM), popularly known as Gordon Model is used to find the intrinsic value…

Q: Eastern Oregon Power company has preferred stock outstanding that pays an annual dividend of $4.25.…

A: The share price is the current market price of the share. It is the price of the share at which any…

Q: . What price is Payout stock selling for today? (Round your answer to 2 decimal places.)…

A: Information Provided: Dividend = $0.85 Shares outstanding = 31,000 Cash = $220,000 Fixed assets =…

Q: what is the stock price

A: Dividend is the part/portion of profits which are distributed among the shareholders. Higher the…

Q: Torch Industries can issue perpetual preferred stock at a price of $67.00 a share. The stock would…

A: The cost of raising the funds by issuing the preferred stock or the rate at which preferred…

Q: Mannix Corporation stock currently sells for $51 per share. The market requires a return of 8.2…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: Fior, In has a preferred stock oustandinsd that pays a $7 annual dividend. if investors required…

A: Dividends: The term dividends allude to that portion of proceeds of an organization which is…

Q: Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $2.00…

A: The selling price for the preferred stock can be calculated with the help of below expression:

Q: Marme, Inc. has preferred stock selling for 99 percent of par that pays an annual coupon of 11…

A: Preferred stock face value =$100 Annual coupon percentage =11% Selling price of stock =100*99%=$99…

Q: TSC, Inc. sells for $24 and pays an annual per share dividend of $2.10, which you expect to grow at…

A: We will have to use the dividend discount model here.

Q: A preferred stock from DLC pays $3.00 in annual dividends. If the required return on the preferred…

A: In this question we need to compute the value of preferred stock. While valuing the preferred stock…

Q: Jersey Medical earns $9.50 a share, sells for $80, and pays a $7 per share dividend. The stock is…

A: Stock split is a process in which the company divides the existing shares, thereby increasing the…

Q: Everest Inc's preferred stock pays a dividend of $1.10 per quarter, and it sells the preferred stock…

A: Calculate the dividend rate as follows: dividend rate = Dividend / Share price  dividend rate =…

Q: Torch Industries can issue perpetual preferred stock at a price of $72.50 a share. The stock would…

A: Company's cost of preferred stock = Annual dividend / stock price

Q: Suppose that you own 3,400 shares of Nocash Corp. and the company is about to pay a 25% stock…

A: Dividends are profit shares paid to the shareholders for their investment in a company.  Sometimes…

Q: Achi Corp. has preferred stock with an annual dividend of $3. If the required return on Achi’s…

A: Given: Annual dividend =$3Required return =$8%

Q: Nick's Enchiladas has preferred stock outstanding that pays a dividend of $5 at the end of each…

A: Dividend (D0)=$5 Sale price (P0)=$50   Required rate of return (rp)= =D0P0=$5$ 50=0.10 or 10%

Q: Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is…

A: Annual dividend = 11 Stock current price = 105 Flotation cost = 5% Market price after flotation cost…

Q: Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. The stock is…

A: Cost of preferred stock = Dividend / Net Price

Q: Torch Industries can issue perpetual preferred stock at a price of $53.00 a share. The stock would…

A: company's cost of preferred stock =Annual Dividend / Stock Price

Q: Achi Corp. has preferred stock with an annual dividend of $2.83. If the required return on​ Achi's…

A: Annual dividend = $2.83 Required return = 7.5%

Q: The Blooming Flower Co. has earnings of $1.87 per share. a. If the benchmark PE for the company is…

A: PE ratio is the ratio of price of share divided by earnings per share of the company. PE=share…

Q: Torch Industries can issue perpetual preferred stock at a price of $55.50 a share. The stock would…

A: The question is based on the concept of cost of perpetual share, the cost is calculated by dividing…

Q: A preferred stock from Duquesne Light Company pays $3.55 in annual dividends. If the required return…

A: The provided information are: Annual dividend (D)= $3.55 Current price of the preferred stock…

Q: ABCIndustries will pay a dividend of $1 next year on their common stock. Thecompany predicts that…

A: The rate of return that is expected by investors on their equity investment is term as the cost of…

Q: Torch Industries can issue perpetual preferred stock at a price of $61.00 a share. The stock would…

A: Cost of preferred stock = Annual dividend / Stock price where, Annual dividend = $4.50 Stock price =…

Q: Tando Airlines has preferred stock outstanding that has a par value equal to $100. Preferred…

A: Cost of preferred stock as follows: Cost of preferred stock = Dividend / Current price Cost of…

Q: Torch Industries can issue perpetual preferred stock at a price of $62.00 a share. The stock would…

A: Cost of preferred stock = Annual dividend / Stock Price

Q: A share of common stock just paid a dividend of $5. If the expected long-run growth rate for this…

A: The stock price can be calculated with the help of dividend discount model

Q: MF Corp. has an ROE of 14% and a plowback ratio of 75%. The market capitalization rate is 13%. a. If…

A: Given:

Q: Torch Industries can issue perpetual preferred stock at a price of $57.50 a share. The stock would…

A: Cost of preferred perpetual stock is dividend with resect to stock price. Cost of Preferred Stock…

Q: A preferred stock from Hecla Mining Co. (HLPRB) pays $5.00 in annual dividends.   If the required…

A: The preferred stocks are the stocks on which preference is given to the stockholder while…

Q: Super Computer Company's stock is selling for OR 70 per share today. It is expected that, at the end…

A: Formula to calculate the expected rate of return for the shareholders: Expected rate of return for…

Q: Torch Industries can issue perpetual preferred stock at a price of $60.00 a share. The stock would…

A: Preferred stock is a component of capital structure where the liability of paying dividend is fixed…