TC Corp. paid a dividend today of 5 per share. The dividend is ...

[LaDunn]

TC Corp. paid a dividend today of 5 per share. The dividend is expected to grow at a constant rate
  of 6.5 per year. If TC Corp. stock is selling for 50.00 per share, the stockholders' expected rate of
  return is
 
  A) 15.49. B) 13.56. C) 11.50. D) 16.50.

Question 2

A company decreases the risk of insolvency by financing long-term assets with short-term debt.
 
  Indicate whether the statement is true or false

[ankilker]

Answer to Question 1

D

Answer to Question 2

FALSE