What is the value of a preferred stock with

What is the value of a preferred stock with

Subject: Business    / Finance
Question
Question 1.1.What is the value of a preferred stock with a $28 par value that pays a 6% of par dividend assuming our required return is 9%? (Points : 20)
$18.67
$19.76
$20.36
$17.98

Question 2.2.A bond’s market value changes when market ________ change. (Points : 20)
coupon rates
face values
interest rates
maturity values

Question 3.3.Much like bonds, most preferred stock has a ________. (Points : 20)
par value
market value
maturity value
coupon value

Question 4.4.Find the value of a stock that is expected to pay a dividend next year of $2.20, and for which analysts forecast growth rates that will continue to be 5% a year into the foreseeable future. Assuming your required return is 12% to hold that company’s stock, what is the current value? (Points : 20)
$28.26
$30.64
$31.43
$32.86

Question 5.5.What is the value, adjusted for annual payments, of a $1,000 par value (face value) 6% coupon rate bond with 10 years remaining to maturity, assuming the current market rate on similar risk debt is now 8%? (Points : 20)
$878.26
$865.80
$832.44
846.25