What is the value of martell mining stock

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Question: 1. What will be the nominal rate of return on a preferred stock with a $100 par value, a stated dividend of 8 percent of par, and a current market price of

(a) $60,

(b) $80,

(c) $100, and

(d) $140?

2. Martell Mining Company's ore reserves are being depleted, so its sales are falling. Also, its pit is getting deeper each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 5 percent per year. If D0 $5 and rs 15%, what is the value of Martell Mining's stock?

Reference no: EM131518574

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