Investors are willing to pay $37.00 for a preferred share that recently paid an annual dividend of

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Question:

Investors are willing to pay $37.00 for a preferred share that recently paid an annual dividend of $1.75. The firm is expected to experience growth of 5.00% per year and its combined state + federal tax rate is 25%. How much would an investors earn on these shares?

A firm has an outstanding issue of $1,000 par value bonds due in 10 years, currently selling for $1,158.91. Investors are earning 14%. What is the coupon rate on these bonds? 17.05%, 14%, 10%, 8.5%, or 21.05%.

A preferred share recently paid an annual dividend of $6.00. investors require a 10% return. The firms tax rate is 25% and is expected to experience growth of 6%. How much should investors pay? $60, $63.60, $47.40, $100.00, or $106.00