1. The next dividend payment by a firm will be $4.41 per share. The dividends are anticipated to maintain a growth rate of 3 percent forever. If the stock currently sells for $22 per share, what is the required return?
2. Valuing Preferred Stock
A firm has an issue of preferred stock outstanding that pays a $2.6 dividend every year in perpetuity. If the required return is 10.44 percent, what is the current price?
3. Voting Rights
A firm has 142714 shares outstanding.
If the company uses straight voting, how many votes would a candidate need in order to gain a seat on the board?
4. Stock Valuation and PE
A firm has earnings of $4.67 per share. The benchmark PE for the company is 22. What stock price would you consider appropriate?