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View Full Version : Expected return on common and preferred stock


kavergith
Nov 7, 2009, 10:06 PM
Thurber common stock just paid a $1.76 divided and its current price is $ 22 per share. The common divided is expected to grow at a constant rate of 5% per year. Thurber preferred stock pays a perpetual $8.98 annual dividend and sells for $98.25. The preferred stock price is expected to remain constant in the foreseeable future. What it is the expected total return? Expected divided yield and expected capital gains yield on Thurber common and preferred stock.

ArcSine
Nov 9, 2009, 06:14 AM
Per the forum's homework help rules (you read 'em, no?) this site doesn't do your homework for you. It checks your work, and gives guidance to help you find the answer.

Not showing your work leaves us nothing to check.

AMBERLYNMORMANN
Jul 5, 2011, 07:16 AM
Expected total - common 12.64 - preferred - 9.02
Expected div. yield - com. 7.64 per - 8.96
Expected cap. Gain. - Com. 2.00 per - 1.00