1. Casino Games Company preferred stock pays a perpetual annual dividend of 3.6% of its $100 par value. If investors require rate of return on this stock is 11%, what is the intrinsic value per share?

a. $32.73

b. $29.82

c. $7.40

d. $3.60

2. You purchased 250 shares of common stock for $30 per share. After 30 days, the stock paid a dividend of $5 per share and you decided to sell all of the stock for $28 per share. What was your return on this investment?

a. -6.67%

b. 0.0%

c. 10.0%

d. 16.67%

e. 23.33%

3. The Dry Well has 6.25 percent preferred stock outstanding with a market value per share of $49 and a book value per share of $25. What is the cost of preferred stock?