1. Casino Games Company preferred stock pays a perpetual annual dividend of 3.6% of its $100 par value. If investors require rate of return on this stock is 11%, what is the intrinsic value per share?
a. $32.73
b. $29.82
c. $7.40
d. $3.60
2. You purchased 250 shares of common stock for $30 per share. After 30 days, the stock paid a dividend of $5 per share and you decided to sell all of the stock for $28 per share. What was your return on this investment?
a. -6.67%
b. 0.0%
c. 10.0%
d. 16.67%
e. 23.33%
3. The Dry Well has 6.25 percent preferred stock outstanding with a market value per share of $49 and a book value per share of $25. What is the cost of preferred stock?