Sophia Principles-Of-Finance Unit 2 Milestone
2 Questions And Answers With Latest Revised
Study Solutions
, lOMoAR cPSD| 7670600
19
1●
Determine the value of a stock with the following variables using the
constant growth model:
Current annual dividend: $2.75 per share
Required return rate: 8.5%
Constant growth rate: 6%
$110.00
●
$114.70
●
$116.60
● $119.35
RATIONALE
Use this calculation:
, 19/20
lOMoAR cPSD| 7670600
UNIT 2 — MILESTONE 2
CONCEPT
→ Stock Valuation
Report an issue with this question
2●
Select the statement that is true of preferred stock.
Preferred stock is not considered
● equity.
Preferred stock is generally thought
● to be more risky than common stock.
Owners of preferred stock have
● more voting rights than owners of
common stock.
Owners of preferred stock have a stronger
claim to a company's
assets than owners of common stock.
RATIONALE
2 Questions And Answers With Latest Revised
Study Solutions
, lOMoAR cPSD| 7670600
19
1●
Determine the value of a stock with the following variables using the
constant growth model:
Current annual dividend: $2.75 per share
Required return rate: 8.5%
Constant growth rate: 6%
$110.00
●
$114.70
●
$116.60
● $119.35
RATIONALE
Use this calculation:
, 19/20
lOMoAR cPSD| 7670600
UNIT 2 — MILESTONE 2
CONCEPT
→ Stock Valuation
Report an issue with this question
2●
Select the statement that is true of preferred stock.
Preferred stock is not considered
● equity.
Preferred stock is generally thought
● to be more risky than common stock.
Owners of preferred stock have
● more voting rights than owners of
common stock.
Owners of preferred stock have a stronger
claim to a company's
assets than owners of common stock.
RATIONALE
