答案和详解如下： 1.What is the value of a preferred stock that is expected to pay a $5.00 annual dividend per year forever if similar risk securities are now yielding 8 percent? A) $40.00. B) $60.00. C) $80.00. D) $62.50. The correct answer was D) $5.00/.08 = $62.50. 2.A company has 6 percent preferred stock outstanding with a par value of $100. The required return on the preferred is 8 percent. What is the value of the preferred stock? A) $100.00. B) $92.59. C) $94.34. D) $75.00. The correct answer was D) The annual dividend on the preferred is $100(.06) = $6.00. The value of the preferred is $6.00/0.08 = $75.00.
3.A company has 8 percent preferred stock outstanding with a par value of $100. The required return on the preferred is 5 percent. What is the value of the preferred stock?
A) $100.00. B) $152.81. C) $160.00. D) $62.50. The correct answer was C) The annual dividend on the preferred is $100(.08) = $8.00. The value of the preferred is $8.00/0.05 = $160.00.
4.The preferred stock of the Delco Investments Company has a par value of $150 and a dividend of $11.50. A shareholder’s required return on this stock is 14%. What is the maximum price he would pay?
A) $82.14. B) $150.00. C) $54.76. D) $54.79. The correct answer was A) Value of preferred = D / kp = $11.50 / 0.14 = $82.14
5.If a preferred stock that pays a $11.50 dividend is trading at $88.46, what is the market’s required rate of return for this security?
A) 7.69%. B) 13.00%. C) 11.76%. D) 10.00%. The correct answer was B) From the formula: ValuePreferred Stock = D / kp, we derive kp = D / ValuePreferred Stock = 11.50 / 88.46 = 0.1300, or 13.00%.
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发表于 2008-4-10 16:44
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