What is the rate of return on a preferred stock that has a par value of $50, a market price of $46.50, and a dividend of $4.10? A) 8.20% B) 11.34% C) 8.82% D) 12.20%

Q: Answer the multiple-choice question below: 1. LUCELEC’s preferred shares pay a dividend of $4.50.…

A: Preferred Shares: Preferred Share is one kind of ownership that has a preference for the claims of…

Q: Suppose a stock had an initial price of $57 per share, paid a dividend of $1.00 per share during the…

A: To calculate the percentage return we will use the below formula   Percentage return =…

Q: For the following stock investment, find (a) the total purchase price, (b) the total dividend…

A: Number of shares110Price per share$22.50Dividend per share$1.89Sale price per share$19.50Required:…

Q: What will be the nominal RoR on a perpetual preferred stock with a $100 par value, a stated dividend…

A: Par value = $100 Dividend rate = 7% Annual dividend = 100*0.07 = $7

Q: What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a…

A: Nominal Rate of Return on a Perpetual Preferred Stock    A perpetual preferred stock is a type of…

Q: If a preferred stock from pays $3.00 in annual dividends, and the required return on the preferred…

A: Preferred Stock :— It is one of the source of capital in which it pays fixed periodic dividend to…

Q: 0000 What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a…

A: Preferred stock is an example of a zero-growth stock because the dividend on preferred stock is…

Q: Magnesium Corporation has a policy of retaining 75% of its income. The growth rate of the company…

A: " Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first…

Q: PREFERRED STOCK RATE OF RETURN What will be the nominal rate of return on a per- petual preferred…

A: Nominal rate of return = Dividend / Current market price Where, Dividend = Par Value * Dividend Rate…

Q: LUCELEC’s preferred shares pay a dividend of $4.50. What is the value of the stock if your required…

A: Preferred stock means the amount raised against which dividend is given to stock holder but after…

Q: Suppose a stock had an initial price of $98 per share, paid a dividend of $3.20 per share during the…

A: Initial price (P0) = $98Dividend (D) = $3.20Ending price (P1) = $106

Q: A preferred stock pays a dividend of $5.8.  If the required return is 12.3%, what is the value of…

A: Value of Stock = Dividend / Required rate of return

Q: f Muscat Tiles has the cost of preferred stock 10.8%, the stated dividend is 20 and floatation cost…

A: Solution Given Cost of preferred stock 10.8% Stated dividend 20 Flotation cost 5%…

Q: What is the total return of an equal-weighted index over the holding period given the following data…

A: Given,  Three stocks A, B and C

Q: Calculate the value of preferred stock given: Dividend Payment (D) is $10 and Capitalization Rate…

A: Value of Preferred stock = Dividend payment / Capitalisation Rate

Q: Please give

A: Step 1:

Q: Question 1 Consider the three stocks in the following table. P, represents price at time t, and Q,…

A: The rate of return refers to the minimum return earned by the investor while investing in the stocks…

Q: Find the dividend yield for a stock that pays an annual dividend of $1.28 per share and has a…

A: Dividend Yield = Annual Dividend / Current Price

Q: A share of preferred stock has a par value of $100, an annual dividend of 2% and a current market…

A: The required rate of return on the preference stock is 2.99%.Explanation:Step 1:Information…

Q: You are evaluating two stocks and trying to decide if they are underv You are given the following…

A: Alpha of stock shows that how is the performance of stock based on the risk involved in the stock so…

Q: 7.In the formula r = (D1/P0) + g, what does (D1/P0) represent? a. the expected price appreciation…

A: Hi studentSince there are multiple questions, we will answer only first question.Dividend discount…

Q: Suppose a stock had an initial price of $91 per share, paid a dividend of $1.80 per share during the…

A: Initial price (P0) = $91 Dividend (D) = $1.80 Ending price (P1) = $108

Q: The following graph shows the value of a stock's dividends over time. The stock's current dividend…

A: Given:stock's current dividend = $1.00 per shareGrowth rate (R) = 3.50% or 0.035 (Divide…

Q: Initial Final Shares Initial Value of Outstanding stock Stock Price Price (million) $million) АВС…

A: In this we have to calculate initial market value and final value and find the difference between…

Q: What is the cost of preferred stock if the annual dividend is $8.75, stock price is $12, and the…

A: The cost of preferred stock refers to the return that the company provides to their preferred…

Q: Suppose a stock had an initial price of $35.19 per share, paid a dividend of $2.26 per share during…

A: Given information in question Current price =$35.19 Dividend paid=$2.26 Ending price=$33.6

Q: 1. If the required rate of return is 5 percent and the stock pays a fixed S5 dividend, its value is…

A: Value of stock = Dividend / Required Rate of return Value of stock = 5 / 5% Value of stock =100…

Q: Suppose a stock had an initial price of $85 per share, paid a dividend of $1.50 per share during the…

A: Given,  Initial price per share = $85Ending price per share = $99Dividend per share = $1.50 (a)…

Q: Cost of preferred stock    Determine the cost for the following preferred stock.  Par Value: 75.00…

A: Cost of preferred stock can be calculated by using equation below.WhereNet sale price =Sale price…

Q: You calculated the value of a stock to be $108.  The stock pays a dividend of $7.6. What is the most…

A: A stock represents a share of ownership in a publicly-traded company. value of stock = $108 Dividend…

Q: A stock is currently selling for $60 a share. What is the percentage gain or loss on the…

A: a) It is a loss.Percentage loss16.67%b) It is a loss.Percentage loss16.67%Explanation:Step 1: A…

Q: n the formula ke >= (D1/P0) + g, what does (D1/P0) represent? Select one: a. The expected…

A: ke = Required return D1=Expected dividend P0=Current price  g = Growth rate

Q: Favored stock will pay a dividend this year of $ 2.57 per share and its stock price is $ 45.63 .…

A: Dividend (D) = $2.57 Stock price (P0) = $45.63 Dividend yield = ?     Dividend yield is percentage…

Q: Determine the cost of common stock (equity). The T-Bill rate is 5.2%. The Market Return is 12.7%.…

A: Market Return = 12.7%Beta = 1.27T-Bill Rate = Risk Free Rate = 5.2% ExplanationWe calculate the Cost…

Q: The preferred stock of Axim Corp. is currently selling at $51.07. If the required rate of return is…

A: Answer  Current price = $51.07 required rate of return = 11.7%

Q: Suppose a share of preferred stock sells for $50.25 and pays a dividend of $9.26 each period. What…

A: Dividend per period = $9.26Current price of preferred stock = $50.25

Q: Assume a stock pays a perpetual dividend of 2 dollars, has a required rate of return of 9%, a…

A: Liquidity-based asset pricing empirically explains: the cross-section of stock earnings; how less…

Q: A stock's next expected dividend divided by the current stock price is the: O current yield O total…

A: A stock's price is decided by the dividend it pays, the dividend growth rate and the required rate…

Q: What is the formula for Price to Book Value ( MV/BV) ratio ? If Current Price = 126, Total Equity =…

A: The “Price/Book Value” Ratio (P/BV) is calculated by dividing the price of a share of stock by the…

Q: Calculating Returns: Suppose a stock had an initial price of $76 per share, paid a dividend of $1.95…

A: Total return is the percentage of income earned by investing in a particular stock.…

Q: Suppose a stock had an initial price of $86 per share, paid a dividend of $1.70 per share during the…

A: Percentage Return:= (Closing price + Receipts - Opening price) / Opening price x 100= (72.50 + 1.70…

Q: If a company has a forward (forecasted) EPS of 0.757 and a forward PE of 86.995, what is the…

A: The price-earning ratio, or P/E ratio, is another name for the comparison between the market price…

Q: What will be the nominal rate of return on perpetual preferred stock with a $160 par value, a stated…

A: In the given question we need to compute the nominal rate of return on perpetual preferred stock.…

Q: What will be the nominal rate of return on a preferred stock with a $100 par value, a stated…

A: Given details are : Par value = $100 Dividend rate = 8% Dividend amount = $100 * 8% = $8 Current…

Q: The following stock quotations were recently reported in The Wall Street Journal: 49.42 30.92 11.4…

A: The question is based on the concept of reading data of stock quotation from the Wall street…

Q: A firm’s common stock has D1 = $1.50, P0 = $30.00, g = 5%, and F = 4%. If the firmmust issue new…

A: The cost of equity is the return a company requires to decide if an investment meets capital return…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.