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?