If the required rate of return on the preferred stock is 7


1. A preferred stock from Hecla Mining Co. (HLPRB) pays $2.90 in annual dividends. If the required rate of return on the preferred stock is 7 percent, what is the fair present value of the stock? (Round your answer to 2 decimal places. (e.g., 32.16)

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2. You have discovered that when the required rate of return on a bond you own fell by 0.5 percent from 9.5 percent to 9 percent, the fair present value rose from $975 to $985. What is the duration of this bond? Assume annual payments. ((Do not round intermediate calculations. Round your answer to 2 decimal place. (e.g., 32.12))

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Financial Management: If the required rate of return on the preferred stock is 7
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