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CHAPTER 8 PROBLEMS
VALUATION AND CHARACTERISTICS OF STOCK
PROBLEM 8-6
PREFERRED STOCK VALUATION
DATA
		TCF Capital	TAYC Capital
Annual dividend		$2,69	$2,44
Required rate of return		12%	12%
Value		$0,00	$0,00
PROBLEM 8-8
COMMON STOCK VALUATION
Growth rate		7,0%
Dividend		$1,32
Required rate		11,0%
Value		$0,00
PROBLEM 8-14
MEASURING GROWTH
Return on Equity		18,0%
Retention Rate		40,0%
Growth Rate =		0,0%
PROBLEM 8-21
PREFERRED STOCK EXPECTED RETURN
DATA
	STOCK A	STOCK B
Annual dividend	$4,50	$4,25
Market Price	$35,00	$36,00
Required annual return	12,0%
Expected return	12,9%	11,8%
Difference	0,0%	0,0%
PROBLEM 8-28
COMMON STOCKHOLDER EXPECTED RETURN
DATA
Market price per share		$23,00
Growth rate		10,5%
Dividend yield		2,50
Required rate of return		17,0%
A)
Expected rate of return		0,0%
B)
Value =		$0,00

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