Author Question: Canada Inc. pays an annual dividend of $9.40 per share. If your required rate of return on an equity ... (Read 38 times)

amymoore · **on:** Aug 7, 2023

Question 1

Canada Inc. pays an annual dividend of $4 per share. If your required rate of return on an equity investment is 14%, and Canada Inc.’s expected growth rate is 5%, what should Canada Inc.’s price be?

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$46.67

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$47.10

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$47.49

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$47.80

Question 2

Canada Inc. pays an annual dividend of $9.40 per share. If your required rate of return on an equity investment is 13.6%, and Canada Inc.’s expected growth rate is 5.2%, what should Canada Inc.’s price be?

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$116.15

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$116.66

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$117.30

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$117.72

kaynelson17 · **Reply #1 on:** Aug 7, 2023

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