ONLY PART B and C are to be solved

3) a) ) b) Preferred shares of A Corp. currently sell for $16 per share and offer a dividend of $1 per share, which is not expected to change. If Rachel is looking for a 8% return on investment are A Corp. shares a good choice? Briefly explain. Preferred shares of B Corp just paid a dividend of $1.50 per share and the dividend is expected to grow by 5% every year. If the market discount rate on these preferred shares is 12%, what should be the price of a preferred share of B Corp. today? Common shares of C Corp. just paid a dividend of $0.80 per share. C Corp. pays out 25% of its profits to shareholders and currently has a 15% return on equity. If the market discount rate is 12%, what is the price of a common share of C Corp. today? Suppose someone buys D Corp for $3 per share right now. In one year the stock pays out a dividend of $0.20 per share and can be sold for $3.30 per share. What is the annual market discount rate implied these facts? c) ) d)