Author Question: Goode Inc.s stock has a required rate of return of 12.6%, and it sells for $29 per share. Goodes ... (Read 19 times)

heatherbabydoll1 · **on:** Aug 7, 2023

Question 1

Gary Wells Inc. plans to issue perpetual preferred stock with an annual dividend of $7.30 per share. If the required return on this preferred stock is 7.6%, at what price should the stock sell?

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$90.02

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$92.38

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$94.50

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$96.05

Question 2

Goode Inc.’s stock has a required rate of return of 12.6%, and it sells for $29 per share. Goode’s dividend is expected to grow at a constant rate of 8% per year. What was Goode’s last dividend, D₀?

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$0.86

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$1.24

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$1.55

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$1.80

koung719 · **Reply #1 on:** Aug 7, 2023

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