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Author Question: Canada Inc. pays an annual dividend of $1.70 per share. If your required rate of return on an equity ... (Read 13 times)

tashina2013

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Question 1

Canada Inc. pays an annual dividend of $0.80 per share. If your required rate of return on an equity investment is 18%, and Canada Inc.’s expected growth rate is 2%, what should Canada Inc.’s price be?

$4.50


$5.10


$5.80


$6.40



Question 2

Canada Inc. pays an annual dividend of $1.70 per share. If your required rate of return on an equity investment is 13%, and Canada Inc.’s expected growth rate is 5%, what should Canada Inc.’s price be?

$21.78


$22.04


$22.31


$22.75



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Marked as best answer by tashina2013 on Aug 7, 2023

viper01

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tashina2013

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Reply 2 on: Aug 7, 2023
Excellent


mjenn52

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Reply 3 on: Yesterday
Wow, this really help

 

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