Question

please provide a step by step set of instructions for how to solve:

Fill in the missing information in the following table: (Round answers to 2 decimal places, e.g. 11.61 or 11.61%.) Preferred Shares in Canada Dividends paid per share Price Par value Required return Dividend rate Company $100 8.00% 4.40% $4.40 A $60 $50 2.40% $64 $69 $7.40 C % 13.40% $50 $50 % $90 $18 6.40% $100 $8.90 P 3.40% $16.80 6.40% 8.40% $17.40 H 4.40% 5.40%

Answer 1

As per rules I am answering the first 4 subparts of the question

1: Company A: Price = Dividend/ Required return

= 4.4/8%

= $55

2: Company B:

Dividend = price* required return

= 60*2.4%

= 1.44

Dividend rate= dividend amount/ par value

= 1.44/ 50

= 2.88%

3: company C:

Dividend rate= dividend amount/ par value

= 7.4/69

=10.72%

Required return= dividend amount/ share price

= 7.4/ 64

= 11.56%

4: Company D

Dividend per share= dividend rate* par value

= 13.4%*50 = 6.7

Required return= dividend amount/ share price

= 6.7/50

= 13.4%