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Author Question: What return on investment would you earn if you bought a stock on 1/1/16 for $100, received a 1% per ... (Read 56 times)

tingc95

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Question 1

What would be the market price of a stock that paid a constant $2.00 per year in dividends in perpetuity, if the expected market return for a risk of this type was 7.5%?


◦ $25
◦ $100
◦ $26.67
◦ $27.50

Question 2

What return on investment would you earn if you bought a stock on 1/1/16 for $100, received a 1% per quarter dividend and sold the stock on 1/2/2017 for $107?


◦ 9%
◦ 11.2%
◦ 12.07%
◦ 11%


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Marked as best answer by tingc95 on Apr 14, 2019

Ptupou85

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