7. what would be the expected rate of return on a perpetual preferred stock with...
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7. what would be the expected rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 10% of par, and a current market price of $80?
10%, 8%, 12.50%, 12.62%, 9.52%
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QUESTION 8 Hamil Drilling Company's reserves are being depleted, so its sales are fulling. As a result, the company's earnings and dividends are declining at the constant rate of 3 percent per year. If D0 - $5.00 and is -12%, what is the value of Hamil Drilling's stock? a. $57.22 6.553.89 CS55.56 O d. $33.33 e. S32.33 QUESTION 9 The beta of Stock Ais -0.3 (indicating that its returns rise when returns on most other stocks fall. If the risk-free rate in 5.2 percent and the expected rate of return on an average stock is 10.9 percent, what is the required rate of return on Stock A? a. 6.91% b. 1.9396 OC 1.71% d. 3.499 1.8.479
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