Posts Tagged ‘Stock Price’

What happens to a stock’s price after the company increases the amount of common stock?

Thursday, March 19th, 2009
Alfred M asked:


Lets say they double the amount of common stock, will the price fall? Will the price fall soon after they announce it or will it fall when they issue it? Will it fall at all?

Vincent

Preferred Stock and common stock rate of return?

Sunday, June 22nd, 2008
pbbls asked:


An issue of preferred stock is paying an annual dividend of $5. The growth rate for the firms common stock is 14%. What is the preferred stock price if the required rate of return is 11%?

An issue of common stock has just paid a dividend of $3.75. Its growth rate is 8%. What is its price if the required rate of return is 16%?

Brent