Question: PLEASE ANSWER BOTH QUESTIONS DOO eBook What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a

PLEASE ANSWER BOTH QUESTIONS

DOO eBook What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 12% of pat, and a current market price of (a) $67. (b) $78, (C) 595, and (d) $1377 Round your answers to two decimal placed 0 0 3. % b. 94 E eBook Problem Walk-Through You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $1.75 a share at the end of the year (D = $1.75) and has a beta of 0.9. The risk-free rate is 5.9%, and the market risk premium is 5%. Justus currently sells for $38.00 a share, and its dividend is expected to grow at some constant rate, 9. Assuming the market is in equilibrium, what does the market belleve will be the stock price at the end of 3 years? (That is, what is Ps) Do not round intermediate calculations, Round your answer to the nearest cent

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