Question: 1A) B) A preferred stock from Hecla Mining Co. (HLPRB) pays $3.40 in annual dividends. If the required rate of return on the preferred stock

1A)

A preferred stock from Hecla Mining Co. (HLPRB) pays $3.40 in annual dividends. If the required rate of return on the preferred stock is 8 percent, what is the fair present value of the stock? (Round your answer to 2 decimal places. (e.g. 32.16)) Fair presunt value A particular security's equilibrium rate of return is 8 percent. For all securities, the inflation risk premium is 1.75 percent and the real risk-free rate is 3.5 percent. The security's liquidity risk premium is 0.35 percent and maturity risk premium is 1.05 percent. The security has no special covenants. Calculate the security's default risk premium. (Round your answer to 2 decimal places. (0.9. 3246)) Default risk premium

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