J&J foods wants to issue 5.4 percent preferred
stock with a stated liquidating value of $100 a share. The company
has determined that stocks with similar characteristics provide a
return of 8.2 percent. what should the offer price be?
a. $61.38
b. $64.20
c. $69.27
d.$67.26
e. $65.85
J&J foods wants to issue 5.4 percent preferred stock with a stated liquidating value of $100...
J&J Foods wants to issue 5.4 percent preferred stock with a stated liquidating value of $100 a share. The company has determined that stocks with similar characteristics provide a return of 8.2 percent. What should the offer price be?
Suppose the XYZ Co. wants to sell preferred stock at $70 per share. A similar issue of preferred stock already outstanding has a price of $50 per share and offers a dividend of $1 every quarter. What dividend will XYZ Co. have to offer if the preferred stock is going to sell? $1.0 per share $1.2 per share $1.4 per share $1.8 per share $2.0 per share
38 Here and After Corporation plans a new issue of preferred stock. Similar risk stock currently offers an annual return to investors of 15.0%. The company wants the stock to sell for $689.00 per share. What annual dividend must the company offer? $149.03 $4,593.33 $114.72 $103.35 $4,239.65
Crane Company is authorized to issue 8000 shares of 7%, $100 par value preferred stock and 450000 shares of no-par common stock with a stated value of $1 per share. If Crane issues 4000 shares of preferred stock for land with an asking price of $565000 and a market value of $540000, which of the following would be the journal entry for Crane to record? Land 540000 Preferred Stock Paid-in Capital in Excess of Par-Preferred 400000 140000 Land 400000 Preferred...
stock price? 11. Valuing Preferred Stock. E-Eyes.com has a new issue of preferred stock it calle 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require a return of 8 percent on this stock, how much should you pay today? 12. Stock Valuation. Alexander Corp. will pay a dividend of $2.72 next year. The company has stated that it will maintain a constant...
Coronado Company is authorized to issue 9000 shares of 9%, $100 par value preferred stock and 522000 shares of no-par common stock with a stated value of $1 per share. If Coronado issues 4500 shares of preferred stock for land with an asking price of $571000 and a market value of $547000, which of the following would be the journal entry for Coronado to record? (a) Land 571000 Preferred Stock 450000 Paid-in Capital in Excess of Par-Preferred 121000 (b) Land...
2. North Pole Air has an issue of preferred stock outstanding that pays dividends of $8.50 annually. The par value of each preferred share is $100. Investors require a 12.25 percent rate of return on this stock. The next annual dividend is due tomorrow. What should the current market price be? [Hint: This problem has a little twist!]
Problem 8-1(Preferred stock valuation) What is the value of a preferred stock when the dividend rate is 16 percent on a $75 par value? The appropriate discount rate for a stock of this risk level is 14 percent. The value of the preferred stock is _______ . (Round to the nearest cent.)(Preferred stock valuation) The preferred stock of Gandt Corporation pays a $0.50 dividend. What is the value of the stock if your required return is 11 percent? The value of the...
What would be the expected rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 9 percent of par, and a current market price of $70? a. 9.00% b. 12.86% c. 12.02% d. 6.30% e. 14.19%
Crane Company is authorized to issue 8000 shares of 7%, $100 par value preferred stock and 450000 shares of no-par common stock with a stated value of $1 per share. If Crane issues 4000 shares of preferred stock for land with an asking price of $565000 and a market value of $540000, which of the following would be the journal entry for Crane to record? 400000 400000 Land Preferred Stock Land Preferred Stock 540000 540000 O Land 540000 Preferred Stock...