Perpetual preferred stock

Reference no: EM13877299

1) Johnson Corporation JUST PAID a dividend of $4.63. The expected growth rate on dividends is 8 percent. What is the current price of this stock if the required rate of return is 10 percent?

2) Grant, Inc. is a fast growing company and its dividend is expected to grow at a rate of 10 percent for the next two years. It will then settle to a constant growth rate of 5 percent. If the last dividend was $6.20 and the required rate of return is 15 percent, what is the current price of the stock?

3)Ajax Company has issued perpetual preferred stock with an annual dividend of $4.80. What is the value of this preferred stock if the required rate of return is 8 percent?

Reference no: EM13877299

Questions Cloud

What is the firm''s total wage bill : A firm is competitive in both product and resource market. The firm's short run production function is given by Q = 0.5L1/2 where L is the labor input. Assume the wage rate is $10 and the firm's fixed cost is 100. If the price of the good in the m..

The limit on the amount of wage income : If the government raised the limit on the amount of wage income that is subject to the F.I.C.A. tax, this would: A. Move the Lorenz curve further from the line of income equality B. Have no effect on the Lorenz curve

Find the average cost pricing : What is the level of output and price if a natural monopolist with the cost function TC = 0.3Q3- 8Q2+ 120Q and market demand function P = 100 - Q follows the average cost pricing? (From 2 possible solutions choose the larger one.) Compare this so..

Strategies for successful health care marketing : Describe three different strategies for successful health care marketing and public relations. Which is your personal favorite? Why?

Perpetual preferred stock : 1) Johnson Corporation JUST PAID a dividend of $4.63. The expected growth rate on dividends is 8 percent. What is the current price of this stock if the required rate of return is 10 percent?

What is taylor rule : What is Taylor rule ? please write very short paragraph.

Diffract meter and monochromatic x-radiation : Figure shows an x-ray diffraction pattern for a-iron taken using a diffract meter and monochromatic x-radiation having a wavelength of 0.1542 nm; each diffraction peak on the pattern has been indexed.

Ryan olson organized a new company me too inc : For each of the transactions, prepare journal entries. Be sure to categorize each account as an asset (A), liability (L), stockholders' equity (SE), revenue (R), or expense (E).

What distribution strategy would you advise the company : You are the marketing manager of a food products company that is considering entering the Indian market - What distribution strategy would you advise the company to pursue? Why

User Account

All Pages