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1. What is the price of a share of preferred stock that has a dividend...

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Finance

1. What is the price of a share of preferred stock that has a dividend of $3 if the cost of preferred (rp) is 15%

2. What would you pay for a share of common stock if you expect the next dividend to be $3 and you expect to sell it in one year for $25, assuming the cost of equity (re) is 15%.

3. MBV is a cruise line which announced that dividends are expected to grow by 3.5 percent annually, having paid a recent dividend of $1.20 per share last month. If you require a 15 percent rate of return, how much are you willing to pay to purchase one share of this stock today?

4. What would you pay for a share of common stock of Pizza Hut where the last dividend was $17 and dividend is expected to increase by 1.6 percent annually, assuming a cost of equity of 15 percent?

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