The Cold Construction Company has common and preferred stock outstanding. The preferred stock pays an...
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The Cold Construction Company has common and preferred stock outstanding. The preferred stock pays an annual dividend of per share and the required rate or return for similar preferred stocks is 6%. The common stock paid a dividend of $2.00 per share last year, but the compound that earnings and dividends will grow by 25% for the next two years before dropping to a constant growth rate forward the required inte of return on similar common stocks is 12 What is the per share value of the company's preferred and common stock? (Please show your answers for the common stock dividends (D1 D2 Dal, the present value of these dividends IPVD) & PID21 and the present value of the common stock price: Do not forget about the preferred stock value calculation)
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