PREFERRED STOCK RATE OF RETURN
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 11% of par, and a current market price of (a) $58.00, (b) $76.00, (c) $97.00, and (d) $145.00? Round your answers to two decimal places.
Annual dividend=100*11%=11
Nominal rate=Annual dividend/Current price
1.Nominal rate=(11/58)=18.97%(Approx).
2.Nominal rate=(11/76)=14.47%(Approx).
3.Nominal rate=(11/97)=11.34%(Approx).
4.Nominal rate=(11/145)=7.58%(Approx).
PREFERRED STOCK RATE OF RETURN What will be the nominal rate of return on a perpetual...
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 11% of par, and a current market price of (a) $53.00, (b) $79.00, (c) $115.00, and (d) $147.00? Round your answers to two decimal places. ___ % ____ % ____ % ____%
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9.6
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 9% of par, and a current market price of (a) $63, (b) $77, (c) $106 and (d) $136? Round your answers to two decimal places. а. b. c. d.
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 10% of par, and a current market price of (a) $68.00, (b) $89.00, (C) $96.00, and (d) $138.00? Round your answers to two decimal places. o é o o
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 11% of par, and a current market price of (a) $62, (b) $86, (c) $103, and (d) $138? Round your answers to two decimal places. a. % %
Click here to read the eBook: Preferred Stock PREFERRED STOCK RATE OF RETURN What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 11% of par, and a current market price of (a) $61.00, (b) $85.00, (c) $117.00, and (d) $142.00? Round your answers to two decimal places. c. % d.