4 Caspian Sea is considering raising $16.00 million by issuing preferred stock. They believe the market…

4
Caspian Sea is considering raising $16.00 million by issuing
preferred stock. They believe the market will use a discount rate
of 8.70% to value the preferred stock which will pay a dividend of
$3.71. How many shares will they need to issue?
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Answer format: Currency: Round to: 0 decimal places.
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#5
A firm will pay a dividend of $2.01 next year. The dividend is
expected to grow at a constant rate of 3.75% forever and the
required rate of return is 14.47%. What is the value of the
stock?
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Answer format: Currency: Round to: 2 decimal places.
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#6
Derek plans to retire on his 65th birthday. However, he plans
to work part-time until he turns 75.00. During these years of
part-time work, he will neither make deposits to nor take
withdrawals from his retirement account. Exactly one year after the
day he turns 75.0 when he fully retires, he will wants to have
$2,760,505.00 in his retirement account. He he will make
contributions to his retirement account from his 26th birthday to
his 65th birthday. To reach his goal, what must the contributions
be? Assume a 5.00% interest rate.
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Answer format: Currency: Round to: 2 decimal places.
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#7
A bank offers 8.00% on savings accounts. What is the effective
annual rate if interest is compounded semi-annually?
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Answer format: Percentage Round to: 4 decimal places (Example:
9.2434%, % sign required. Will accept decimal format rounded to 6
decimal places (ex: 0.092434))