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1. Stagnant Iron and Steel currently pays a $14.75 annual cash dividend (D0). They plan to maintain the dividend at this level for the foreseeable future as no future growth is anticipated.

If the required rate of return by common stockholders (Ke) is 19 percent, what is the price of the common stock? (Do not round intermediate calculations. Round your answer to 2 decimal places)

Price:

2. Analogue Technology has preferred stock outstanding that pays a $15.65 annual dividend. It has a price of $181.

What is the required rate of return (yield) on the preferred stock? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Rate of return: %

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92747645

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