Explore BrainMass
Share

Finance questions

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

I've posted the problems here and in the attachment. Get back to me, thanks.

9-1 DPS CALCULATION Warr Corporation just paid a dividend of $1.50 a share (that is, D0 = $1.50). The dividend is expected to grow 7% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years?

9-3 CONSTANT GROWTH VALUATION Harrison Clothiers' stock currently sells for $20.00 a share. It just paid a dividend of $1.00 a share (that is, D0 = $1.00). The dividend is expected to grow at a constant rate of 6% a year. What stock price is expected 1 year from now? What is the required rate of return?

9-9 PREFERRED STOCK RETURNS Bruner Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $2, and its current price is $80.
a. What is its nominal annual rate of return?
b. What is its effective annual rate of return?

© BrainMass Inc. brainmass.com September 24, 2018, 7:26 am ad1c9bdddf - https://brainmass.com/economics/finance/finance-questions-322457

Attachments

Solution Summary

The solution explains some finance questions relating to dividends, constant growth valuation and preferred stock returns

$2.19