Question 1 (3.3 points) According to the security pricing principle, one of the factors that would directly affect the share price of common stock is:
A) The historical dividends.
B) The political environment.
C) The expected dividends.
D) The holding period of an investor Previous.
Question 2 (3.3 points) Small Mouse Company just paid a quarterly dividend of $1.00. The dividends are expected to grow by 0.5% each quarter. If the market requires an annual return of 6% on the company, what should be the company’s stock price?
Question 3 (3.3 points) A preferred stock pays $1 in quarterly dividends. If the annual required rate of return on the preferred stock is 8%, what should be the price of the preferred stock?
D) $66.67. Get Finance Help Today
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