Author Question: Calculating the modified internal rate of return on an Excel spreadsheet involves the use of the IRR ... (Read 118 times)

Starlight · **on:** Jul 10, 2018

Calculating the modified internal rate of return on an Excel spreadsheet involves the use of the IRR
function multiple times, once using the financing rate, and once using the reinvestment rate.

Indicate whether the statement is true or false

Question 2

Backford Company just paid a dividend yesterday of 2.25 per share. The company's stock is
currently selling for 60 per share, and the required rate of return on Backford Company stock is
16.

What is the growth rate expected for Backford Company dividends assuming constant
growth?
A) 9.89 B) 11.81 C) 9.47 D) 10.87