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一个关于股权的题目.Youareconsideringthreeinvestments.ThefirstisabondthatissellinginthemarketatRM1,200.ThebondhasaRM1,000parvalue,paysinterestat14percent,andisscheduledtomaturein12years.Forbondsofthisriskcla
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问题描述:

一个关于股权的题目.

Youareconsideringthree

investments.ThefirstisabondthatissellinginthemarketatRM1,200.The

bondhasaRM1,000parvalue,paysinterestat14percent,andisscheduledto

maturein12years.Forbondsofthisriskclass,youbelievethata12percent

rateofreturnshouldberequired.Thesecondinvestmentthatyouareanalyzing

isapreferredstock(RM100parvalue)thatsellsforRM80andpaysanannual

dividendofRM12.Yourrequiredrateofreturnforthisstockis14percent.

Thelastinvestmentisacommonstock(RM25parvalue)thatrecentlypaidaRM3

dividend.Thefirm’searningspersharehaveincreasedfromRM4toRM8in10

years,whichalsoreflectstheexpectedgrowthindividendspershareforthe

indefinitefuture.ThestockissellingforRM25,andyouthinkareasonable

requiredrateofreturnforthestockis20percent.

(a)Calculatethevalueofeachsecuritybasedonyour

requiredrateofreturn.

(b)Whichinvestment(s)shouldyouaccept?Why?

(c)Ifyourrequiredrateofreturnchangedto14percent

forthebond,16percentforthepreferredstock,and18percentforthecommon

stock,howwouldyouranswerto(a)and(b)change?

(d)Assumingagainyourrequiredrateofreturnforthe

commonstockis20percent,buttheanticipatedconstantgrowthratechangesto

12percent,howwouldyouranswerstoquestions(a)and(b)change?

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