An issue of preferred stock is paying an annual dividend of $5.00.  The growth rate for the firm's common stock is 14%.  What is the preferred stock price if the required rate of return is 11%.
137377
The common stock shouldn't matter, so the price of the preferred is 5 / .11 = 45.45
210748
Usually you have two options of receiving the dividend, via cash balance or reinvesting the amount.  I'm not sure what the 0.07 represents in your question.  If it is the shared bought by reinvesting the dividend, you now have 965.07 shares.
37457
for question 1 is the return 8.242% per year? I would guess yes, so you would multiply 1.08242 to the 30th power times 10000. \n\nWhat you are doing here is to multiply 10,000 times 1.08242, (add the one to keep the 10000 plus interest, if you dont add the one you are only calculating the interest and have to add back in the 10000) to get how much at the end of year one, then multiply that result by 1.08242 to get what you have at end of year 2. Then keep doing that until at the end of year 30.\n\nThe second question is a bit more difficult. Take that spreadsheet and fill in the values at the top. make your begining value 10000 and the annual payment 0. Not sure what value to use for confidence (I am sure you know what to use here) and the other two were given return = 8%, deviation=10%. After 30 years you will have a lower and an upper limit. \n\nYou then take answer from #1 and find out how far into the range it is to find the percent liklihood. For example if the lower limit was 100 and the upper limit was 300 and your number calculate in #1 was 150, then you can see that 150 is greater than 25% of the possibilities and less than 75%. So you would do worse 25% of the time.\n\nThe actual calulation would be:\nU = Upper limit\nL = lower limit\nR = range = U - L\nC = compared value = answer from #1\n\npercent worse = (C-L)/R\n\nin the example percent worse = (150-100)/(300-100)
80520
You have to add in any expenses you have to the basis of the stock (what you paid for it). It does not matter what you make. If you pd 1$ per share and paid a broker .50 per share and when you sell it for 2$ per share your profit is only .50. I hope this helps. Also you report that on schedule D remember your expenses are added to the cost
119894
Chamwen gave a pretty good explanation of buying and selling for profit. There is one other factor, which you may or may not have been asking about. Many companies pay dividends to their shareholders. If you look at a detailed stock quote (see the link below), you'll usually see a 'dividend yield' figure (under the Valuation header on this page). In this case, HPT's dividend yield is 6.3% (meaning that over the course of the past year, they have paid dividends that equal 6.3% of their share price).\n\nThese dividends can be paid out to you to provide regular income (I own HPT through Sharebuilder, and have my dividends automatically reinvested).
486254
Answer - $104.89\n\nReason:\nHere the rate of return is 9 % = .09 and our cash flow is a constant C = 9.44. Plug those into the PRESENT VALUE INTEREST FACTOR FOR ANNUITIES equation, which is:\n\nPV = C * (1-((1/(1+R))^n))/R\n\nHere n = infinity, since the security has no maturity, and will pay out as long as its in business. So\n\nPV = 9.44 * (1-(1/(1.09))^(inf.))/.09\n\nNotice 1/1.09 ~ .9174311, which is less than one. Multiplying a number less than 1 by itself an infinite amount of times will result in an infinately small number, extermely close to zero. So\n\nPV = 9.44 * (1-0)/.09\n\nPV = 9.44/.09\n\nPV = 104.888888 ~ 104.89\n\nNOTE: If you paid more for this security, your implied rate of return would be less than 9 %. Conversely, if you paid less for this security, your implied rate of return would be more than 9 %.\n\nI hope this cleared things up.\n\nRunner
656585
B is the answer.  If they pay before interest kicks in, no cost other than the goods themselves are involved. "0" percent APR.
388892
With the dividends, if you know the market price of the share, then the cost of equity equals (2/Market Price) + Growth Rate\n\nOtherwise, cost of equity can also be calculated using the CAPM model:\n\nCost of Equity = Rf + Beta(Rm-Rf) = .06+.08(.1) = .068\n\nI'm assuming by market risk premium, you mean excess over the risk free. Otherwise, the answer is .0632 because Beta*(Rm-Rf) becomes .0032. \n\nCost of Debt = Rd\n\nFor cost of debt, you need the Rd, which is how much the company is paying for debt.\n\nThen, WACC is (Cost of Equity) * (Market value of firm's equity) + (Cost of Debt) * (1- Tax Rate) * (Market value of firm's debt)\n\nI have a feeling you're missing some information. To answer this question properly, you need more info: Market price of their preferred stock, how much they are paying for debt, and the amount of equity and debt. \n\nIf there is no debt, then it is just (Cost of Equity * Market Value of Equity) they want
522901
Invest it and draw out 1% less then you return is. At a return of 8% that would be an extra $ 70.000.- a year. That's not to shabby.
195386
If they were yielding 9% on a par of $50, then they pay $4.50 annually per share in dividends. $4.50/$60 is a return of 7.5%.
111936
If it is a listed stock (NYSE or AMEX), then you are due the opening price.  If it is a NASDAQ or OTC stock than you could be filled at $4 or close to it. It depends on the opening bid and offer of the market maker that is holding your order.  The $4 opening print may have been with another market maker, not the one that is holding your order.  This is because with the NASDAQ, there is not a central order book like with the listed exchanges, specialist system.\n\nYour limit order is always an "or better" order so you would never be filled higher than $5.
474240
178500/122.75%\n=$145,417.52
302240
when you sell the shares- the gain will be either short term or long term depending on how long you held them--short term gains are taxed at ordinary income rates--long term rates at the new 15 % capital gains rate-- the mf co will send you a statement which may show some long term capital gains depending on their portfolio- usually the statement from the mf co will spell it all out, including dividends paid to you during the year- its all very simple-- the only thing you should check is how long you have had the shares- i believe the time period for long term gain is one year- double check that- if you are close to that but not there -consider holding the shares to get the very low 15 % long term capital gains tax rate- it is worth waiting for-- i am a retired CPA & CFP__good luck to you--by the way- you can also call the mf co for explanation and some advise free of charge !!
554258
Cost of internal equity is: D1/Price + g =3/30+5%= 15%\n\nCost of external equity is D1/(price-flotation)+g = 3/(27) +5% = 16.11%
426029
Your question isn't worded grammatically correct and, I believe, is being misinterpreted.  Are you saying you owned part of a corporation that you purchased as an investment and sold it after a year?  If you owned stock in a corporation and held it for over a year and sold it, you will have long term gains (or losses).  If this is the only capital gains you had all year, it will be taxed at 15% if your marginal tax rate is greater than 20%, and it will be taxed at 5% if your marginal tax rate is less than 20%.  If it is a loss, it will offset other income up to $3,000...the remainder (if any) will carry over to next year.  If you had other gains or losses, all of them net together.
79484
Reinvesting dividend is like purchasing new units at their market value. Most of the people use this option to save tax on long term capital gains that they would incur in growth option. \n\nTo calculate the returns, the simplest and the most logical way is to compare the market value of your investment incl that of the newly purchased units through dividend reinvestment while ignoring the dates of reinvestment. Further, if you wish to, you can annualize the returns and/or use appropriate inflation deflator to calculate the real returns.
406394
In the U S,  tax rates on long term gains are about 1/2 thoses of short term gains.  \n\nThe longer you hold a stock, that is increasing its earnings, the longer you can hopefully accumulate capital gains without paying any taxes on those gains and the longer you will accumulate gains.  \n\nAn example:   one share of MMM purchased on Jan 2, 1970 at an adjusted cost of $2.18 is now worth $79.19,  a 36x increase in 36 years.   The dividend today is a $1.84. That is almost as much dividend as the value of the original purchase.  Of course, putting all this in perspective, today a dollar is worth about $0.25 in 1970 values.