6 a To estimate earnings per share, an analyst will start by estimating Profits b. Expenses c. Sales d. Number of shares outstanding c. All of the above a. . 7. Once the economy begins its recovery, Financial stocks rise on expectations of increases in loan demand, housing constructions and security offerings b. Consumer durable stocks rise on expectations of rising consumer confidence and personal income. Capital goods stocks rise on expectation of increases in business capital spending d. Basic materials stocks rise on expectation of rising profit margins. Consumer staple stocks rise on expectations that consumers will continue to spend on necessities. c. e. 8. In 2021, Sonny Berhad had issued a RM50 par value preferred stock that pays a 6 percent annual dividend based on the par value. Due to changes in the overall economy and in the company's financial condition investors are now requiring an 8 percent return. What price would you be willing to pay for a share of the preferred if you receive your first dividend one year from now? a b. c. d. e. RM37.50 RM39.00 RM42.85 RM50.00 RM85.71