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Villalpando Winery wants to raise $45 million from the sale of preferred stock. If the winery wants to sell one million shares of preferred stock, what annual dividend will it have to promise if investors demand a return of a. 12%? b. 14%? c. 9%? d. 7%? е. 5%? f. 4%?

Villalpando Winery wants to raise $45 million from the sale of preferred stock. If the winery wants to sell one million shares of preferred stock, what annual dividend will it have to promise if investors demand a return of a. 12%? b. 14%? c. 9%? d. 7%? е. 5%? f. 4%?

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
Problem 9MC
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Villalpando Winery wants to raise $45 million from the sale of preferred stock. If the winery wants to sell one million shares of preferred stock, what annual dividend will it have to promise if investors demand a return of а. 12%? b. 14%? с. 9%? d. 7%? е. 5%? f. 4%? a. What annual dividend will it have to promise if investors demand a return of 12%? $ 5.40 (Round to the nearest cent.) b. What annual dividend will it have to promise if investors demand a return of 14%? $ 6.30 (Round to the nearest cent.) c. What annual dividend will it have to promise if investors demand a return of 9%? $ 4.05 (Round to the nearest cent.) d. What annual dividend will it have to promise if investors demand a return of 7%? $ 3.15 (Round to the nearest cent.) e. What annual dividend will it have to promise if investors demand a return of 5%? $ 2.25 (Round to the nearest cent.)
Transcribed Image Text:Villalpando Winery wants to raise $45 million from the sale of preferred stock. If the winery wants to sell one million shares of preferred stock, what annual dividend will it have to promise if investors demand a return of а. 12%? b. 14%? с. 9%? d. 7%? е. 5%? f. 4%? a. What annual dividend will it have to promise if investors demand a return of 12%? $ 5.40 (Round to the nearest cent.) b. What annual dividend will it have to promise if investors demand a return of 14%? $ 6.30 (Round to the nearest cent.) c. What annual dividend will it have to promise if investors demand a return of 9%? $ 4.05 (Round to the nearest cent.) d. What annual dividend will it have to promise if investors demand a return of 7%? $ 3.15 (Round to the nearest cent.) e. What annual dividend will it have to promise if investors demand a return of 5%? $ 2.25 (Round to the nearest cent.)
Villalpando Winery wants to raise $25 million from the sale of preferred stock. If the winery wants to sell one million shares of preferred stock, what annual dividend will it have to promise if investors demand a return of a. 12%? b. 15%? c. 9%? d. 10%? e. 5%? f. 4%?
Transcribed Image Text:Villalpando Winery wants to raise $25 million from the sale of preferred stock. If the winery wants to sell one million shares of preferred stock, what annual dividend will it have to promise if investors demand a return of a. 12%? b. 15%? c. 9%? d. 10%? e. 5%? f. 4%?
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