Earley coorporation issued preferred stock with an 8% annual dividend. the stock currently yields 7% and its par value is $100.
a) What is the stock value
b) Suppose interest rates rise and pulls the preferred stock yield up to 9% What is the new market value?
Tesnan Brothers is expected to pay a $1.80 per share dividends at the end of the year. The dividend is expected to grow at a constant rate of 4% a year. The required rate of return is 10%.
What is the current value per share?