Stagnant Iron and Steel currently pays a $5.35 annual cash dividend (D0). It plans to maintain the dividend at this level for the foreseeable future as no future growth is anticipated.
If the required rate of return by common stockholders (Ke) is 17 percent, what is the price of the common stock? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
The preferred stock of Denver Savings and Loan pays an annual dividend of $5.70. It has a required rate of return of 6 percent
Compute the price of the preferred stock.
The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 20 years. Use Appendix B and Appendix D.Compute the current price of the bonds if the present yield to maturity is (Round "PV Factor" to 3 decimal places, intermediate and final answers to 2 decimal places.
a) 7 percent $ (b) 8 percent $ (c) 13 percent $