1.What is the value of a fixed-rate perpetual preferred share (par value $100) with a dividend rate of 11.0 percent and a required return of 7.5 percent?

A)   $147.

B)   $138.

C)   $152.

D)   $122.

2.If the value of an 8 percent, fixed-rate, perpetual preferred share is $134, and the par value is $100, what is the required rate of return?

A)   7%.

B)   8%.

C)   9%.

D)   6%.

3.A $100 par, perpetual preferred share pays a fixed dividend of 5.0 percent. If the required rate of return is 6.5 percent, what is the current value of the shares?

A)   $88.64.

B)   $100.00.

C)   $76.92.

D)   $112.50.

4.What is the value of a fixed-rate perpetual preferred share (par value $100) with a dividend rate of 7.0 percent and a required return of 9.0 percent?

A)   $56.

B)   $66.

C)   $71.

D)   $78.

答案和详解如下：

1.What is the value of a fixed-rate perpetual preferred share (par value $100) with a dividend rate of 11.0 percent and a required return of 7.5 percent?

A)   $147.

B)   $138.

C)   $152.

D)   $122.

The correct answer was A)

The value of the preferred is $147:

V₀ = ($100par × 11%) / 7.5% = $146.67

2.If the value of an 8 percent, fixed-rate, perpetual preferred share is $134, and the par value is $100, what is the required rate of return?

A)   7%.

B)   8%.

C)   9%.

D)   6%.

The correct answer was D)

The required rate of return is 6%:

V₀ = ($100par × 8%) / r = $134, r = 5.97%

3.A $100 par, perpetual preferred share pays a fixed dividend of 5.0 percent. If the required rate of return is 6.5 percent, what is the current value of the shares?

A)   $88.64.

B)   $100.00.

C)   $76.92.

D)   $112.50.

The correct answer was C)

The current value of the shares is $76.92:

V₀ = ($100 × 0.05)/0.065 = $76.92

4.What is the value of a fixed-rate perpetual preferred share (par value $100) with a dividend rate of 7.0 percent and a required return of 9.0 percent?

A)   $56.

B)   $66.

C)   $71.

D)   $78.

The correct answer was D)

The value of the preferred is $78:

V₀ = ($100par × 7%) / 9% = $77.78