UPS prefe
ed stock pays $5 in annual dividends. If your required rate of return is 11.56 percent, how much would you be willing to pay for one share of this prefe
ed stock?
Round the answer to two decimal places.
Question 2:
Giant Co. has just issued prefe
ed stock with a par value of $100 and an annual dividend rate of 9.80 percent. If your required rate of return is 7.11 percent, how much will you be willing to pay for one share of this prefe
ed stock?
Round the answer to two decimal places.
Question 3
The Black Forest Cake Company just paid an annual dividend of $7.25. If you expect a constant growth rate of 3.06 percent, and have a required rate of return of 12.19 percent, what is the cu
ent stock price according to the constant growth dividend model?
Round the answer to two decimal places.
John invested the following amounts in three stocks:
Security
Investment
Beta
Stock A
$193,848
1.24
Stock B
$919,214
1.15
Stock C
$418,390
1.56
Calculate the beta portfolio.
Round the answers to two decimal places.