1. Dewyco has preferred stock trading at $ 53 per share. The next preferred dividend of $ 5 is due in one year. What is? Dewyco's cost of capital for preferred? stock?
2. The current price of a stock is 20, the current dividend is 1 and the growth rate is expected to be 10% for 3 years and then drop to 5% constant. What is the stock price 1 year from now?
3. Which of the following is true about a growth stock?
a. It generally pays little or no dividends so as to retain earnings to help fund developmental opportunities.
b. It pays pay large and relatively constant dividends each year.
c. It pays cumulative dividends at the time of maturity.
d. It pays a fixed amount of dividends every year.
e. It has sole voting rights but generally pays out only restricted dividends (if any) for a specified number of years.