1. New company has perpetual preferred stock outstanding that sells for $40 a share and pays a dividend of $2.50 at the end of each year what is the Required rate of return?
2. If I earnings are poor in stock others are the satisfied an outside group my solicit the proxies in an effort to overthrow management take control of the business. This is known as hostile take over, proxy fight, take over, or preemptive right?
3. New companies stock currently sells for $15 a share it just paid a dividend of $.75 a share. The dividend is expected to grow at a constant rate of 7% a year what is the required rate of return?