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(text not clear) A stock\'s beta is a measure of its unsystematic risk. systemat

ID: 2755291 • Letter: #

Question

(text not clear) A stock's beta is a measure of its unsystematic risk. systematic risk. company-unique risk diversifiable risk. The risk-free rate interest is 4% and the market risk premium is 9% , Howard Corporation has a beta of 2.0% The required return on Howard Corporation stock is 36%, 8)34%, 26%, 22%, Speculative, or non-investment-grade, bonds have an S&P; bond rating of C or less CCC or less BB or less BBB or less. Perrine Industrial Inc. just paid a dividend of $5 per share. Future dividends are expected to grow at a constant rate of 7% per year What is the value of the stock if the required return is 16% $33.44 $55 56 $59.44 $65.87 Preferred stock differs from common stock in that preferred stock usually has a maturity date preferred stock investors have a higher required return than common stock investors preferred stock dividends are fixed. common stock investors have a required return and preferred stock investors do not. Which of the following features, or benefits, belong to a firm's common stockholders? limited liability ownership of the firm voting rights all of the above

Explanation / Answer

17) answer is A

18) answer is C) company unique risk

19)answer is D) 22%

20) BB or Less