Author Question: A firm has just paid an annual dividend of 3.00 per share of common stock. If the expected ... (Read 78 times)

jerry coleman · **on:** Jul 10, 2018

A firm has just paid an annual dividend of 3.00 per share of common stock.

If the expected long-run growth rate for this firm is 10, and if you require an annual rate of return of 16, how much should you be willing to pay for a share of this stock?
A) 61
B) 49
C) 58
D) 35
E) 55

Question 2

A callable bond allows the bond issuer to call-in the bond prior to maturity.

Indicate whether the statement is true or false.