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FIN 300 Quiz 4 Stock solutions FALL2020 2 - Quiz #4 Stock...

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Quiz #4 Stock Solutions1.Builtrite preferred stock has a 6%(4%) coupon based on a par value of $45($55) a share. Currently, investors require a 5% return. What is the value ofBuiltrite’s preferred stock?
2.Builtrite common stock is currently selling for $30 ($60) and recently paid adividend of $1.50 ($3.50). The stock has a projected constant growth rate of 7%(6%).If you purchase this stock, what is your expected rate of return?
3.Builtrite preferred stock pays 4%(5%) dividend based on a par value of $55($64). The stock is currently selling at $50 ($70). If you purchase the stock, whatis your expected return?
4.Builtrite stock just paid a dividend of $5 ($4) and dividends are expected to
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Term
Fall
Professor
Olander
Tags
fair price, Builtrite preferred stock

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