A company produces premium spinning tops with the supply fun…

A company produces premium spinning tops with the supply function P=5Q+30, where Q is the quantity of tops demanded, in thousands.  The market for spinning tops faces the demand function Q=10-0.2P. Find the quantity, Q, in thousands of tops demanded at the market equilibrium.

7: Common Stock, Part B (28 points) Answer the following in…

7: Common Stock, Part B (28 points) Answer the following in Excel and submit into Canvas. Universal Super Company (“USC”) paid a common stock dividend of $2.10 per share this year. USC plans to increase its common stock dividend by 1.2% next year, then increase its dividend by 3.5% per year for each of the next two (2) years, and finally settle on a dividend growth rate of 4.7% for the rest of the company’s life. If investors in companies of similar risk require a 9.5% rate of return, what is the value of USC common stock today? Complete in Excel and upload at the end of the exam.

5: Preferred Stock (25 points) Answer the following Preferre…

5: Preferred Stock (25 points) Answer the following Preferred Stock questions in Excel and submit into Canvas. Extra Special Corporation issued preferred stock in 2014 that had a par value of $75. The stock pays a dividend of 4.2%. Assume that the markets required yield (required rate of return) is 6.5%, and the current price of the preferred stock is $44.75. i. What is the value of the preferred stock? ii. What is the expected rate of return of the preferred stock? iii. Would you purchase the preferred stock for $44.75 if your required rate of return was 6.5%? Explain. Complete in Excel and upload at the end of the exam.