Problem 2: "Consider a preferred stock with par value P4,000 per share, 8% dividend rate paid quarterly, and a life of 15 years. If the required annual rate of returns is 10%, what must be the price per share of the stock? 6. What is the payment interval in the problem? a. Every 2 months 7. Compute for the smount of dividend per quarter a. P120 b. Every 3 months c. Every 4 months d. Every 6 months b. P100 c. P80 d. P60 8. What is the present value of the dividend? a. P2,472.69 b. P2,742.69 c. P7,442.69 d. P7,424.69

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A:

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A: a) Computation:

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