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Let's solve each question one by one:

### Question 1:
**A preferred stock with a par value of $100 pays an annual dividend of 6%. If the required return is 8%, what is the price of the preferred stock?**

To find the price of a preferred stock, we use the formula:
\[
\text{Price} = \frac{\text{Dividend}}{\text{Required Return}}
\]

- Annual dividend = 6% of $100 = $ 0.06 \times 100 = 6 $
- Required return = 8% = 0.08

Now, substitute these values into the formula:
\[
\text{Price} = \frac{6}{0.08} = 75
\]

**Answer: $75**

---

### Question 2:
**A company is projected to have cash flows of $50,000, $60,000, and $70,000 over the next three years. If the discount rate is 8%, what is the present value of these cash flows?**

To find the present value (PV) of future cash flows, we use the formula for each year:
\[
\text{PV} = \frac{\text{Cash Flow in Year n}}{(1 + r)^n}
\]
Where $ r $ is the discount rate and $ n $ is the number of years.

1. PV of $50,000 in year 1:
\[
PV_1 = \frac{50,000}{(1 + 0.08)^1} = \frac{50,000}{1.08} \approx 46,296.30
\]

2. PV of $60,000 in year 2:
\[
PV_2 = \frac{60,000}{(1 + 0.08)^2} = \frac{60,000}{1.08^2} = \frac{60,000}{1.1664} \approx 51,434.29
\]

3. PV of $70,000 in year 3:
\[
PV_3 = \frac{70,000}{(1 + 0.08)^3} = \frac{70,000}{1.08^3} = \frac{70,000}{1.2597} \approx 55,571.21
\]

Now sum these present values:
\[
\text{Total PV} = 46,296.30 + 51,434.29 + 55,571.21 = 153,301.80
\]

**Answer: $153,301.80**

---

### Question 3:
**A company has a beta of 1.2. If the risk-free rate is 4% and the expected market return is 12%, what is the expected return on the stock?**

To calculate the expected return, we use the Capital Asset Pricing Model (CAPM) formula:
\[
\text{Expected Return} = \text{Risk-free Rate} + \beta \times (\text{Market Return} - \text{Risk-free Rate})
\]

- Risk-free rate = 4% = 0.04
- Market return = 12% = 0.12
- Beta = 1.2

Substitute the values into the formula:
\[
\text{Expected Return} = 0.04 + 1.2 \times (0.12 - 0.04) = 0.04 + 1.2 \times 0.08 = 0.04 + 0.096 = 0.136
\]

Convert this to percentage:
\[
\text{Expected Return} = 13.6\%
\]

**Answer: 13.6%**

---

Let me know if you'd like further details or have any questions!

Here are 5 related questions to further explore these topics:
1. How would the price of the preferred stock change if the required return increased to 10%?
2. What would be the present value of the cash flows if the discount rate were 10% instead of 8%?
3. How does a company's beta affect the expected return in the CAPM model?
4. How is the dividend yield of a preferred stock calculated, and how does it relate to the stock's price?
5. How do you calculate the present value of a perpetuity if cash flows are expected indefinitely?

**Tip:** When calculating present value for cash flows over multiple periods, always ensure to discount each cash flow at the proper time period, as discount rates accumulate over time.

Solve these 3 finance-related questions: 1) A preferred stock with a par value of $100 pays an annual dividend of 6%. If the required return is 8%, what is the price of the preferred stock? 2) A company is projected to have cash flows of $50,000, $60,000, and $70,000 over the next three years. If the discount rate is 8%, what is the present value of these cash flows? 3) A company has a beta of 1.2. If the risk-free rate is 4% and the expected market return is 12%, what is the expected return on the stock?

Solve finance questions on preferred stock valuation, present value of cash flows over three years, and the CAPM model. Learn key financial concepts such as discounted cash flow and expected return.

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