1. 1. What is the total percentage return for an investor who purchased a stock for $7.13,...
Question:
1. 1. What is the total percentage return for an investor who purchased a stock for $7.13, received $2.07in dividend payments, and sold the stock for $8.03? Please write answers as a percentage (e.g. .1234 should be written as 12.34)
2. What is the value of a share of preferred stock that promises to pay $2.62 every year, indefinitely, if you have a required rate of return of 13.84%? Once you have completed all calculations, please round your answer to two decimal places.
3. Suppose Nabisco Corporation just issued a dividend of $2.28 per share yesterday. Subsequent dividends will grow at a constant rate of 7.4% indefinitely. If the required rate of return for this stock is 9.72%, what is the value of a share of common stock today? Once you have completed all calculations, please round your answer to two decimal places.
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart