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- Assume you buy 200 shares of stock at $70 per share on margin (40 percent). a. If the price risesto $95 per share, what is your percentage gain on the initial equity? b. What would the percentageloss on the initial equity be if the price had decreased to $40 ?You own 450 shares of Maslyn Tours stock that sells for $58.06 per share. If the stock has a dividend yield of 3.0 percent, how much do you expect to receive next year in dividend income from this investment?You purchase 100 shares of COST (Costco) for $280 per share. Three months later, you sell the stock for $290 per share. You receive a dividend of $0.57 a share. What is your total dollar return?
- A preferred stock paying a dividend of 8% on a $100 par value. If a new issue is offered, costs will be 15 percent of the current price of $150. What is the cost of capital for the preferred stock?A company’s perpetual preferred stock currently sells for $87.94 per share, and it pays a $7.24 annual dividend. What is the firm's cost of preferred stock? Express your answer as a percent rounded to two (2) decimal places.Suppose you have 100 common shares of Tillman Industries. The EPS is $4.00, theDPS is $2.00, and the stock sells for $60 per share. Now Tillman announces a twofor-one split. Immediately after the split, how many shares will you have, what willbe the adjusted EPS and DPS, and what would you expect the stock price to be?
- Willie's Western Corp. has outstanding nonconvertible preferred stock (cumulative) that pays a quarterly dividend of RM1.25. If your required rate of return is 9.5%, what should you be willing to pay for 100 shares of Willie's Western?TSC, Inc. sells for $23 and pays an annual per share dividend of $2.50, which you expect to grow at 6 percent. What is your expected return on this stock? Round your answer to the two decimal places. % What would be the expected return if the price were $37 a share? Round your answer to the two decimal places. %Ezzell Corporation issued preferred stock with a stated dividend of 10% of par. Preferred stock of this type currently yields 8%, and the par value is $100. Assume dividends are paid annually. What is the value of Ezzell’s preferred stock? (4 points) Suppose interest rate levels rise to the point where the preferred stock now yields 12%. What would be the value of Ezzell’s preferred stock? (6points)
