A share of preferred stock pays an annual dividend of $2.00. What is the price of the preferred stock if the required rate of return is 11%?
A stock is expected to pay a dividend of $3.00 next year. Dividends are expected to grow at an annual rate of 4%. What is the required rate of return on the stock if the current market price is $40.00?
What are the dividend yield, capital gains yield, and total required rate of return based on the following.
P0 = $14, D1 = $0.98, P1 = $15.00