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Author Question: Prock Petroleums stock has a required return of 14%, and the stock sells for $68 per share. The firm ... (Read 39 times)

campbellfam07

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on: Aug 7, 2023

Question 1

Pink Canada Inc. (PCI) pays an annual dividend of $3.40 per share. If PCI’s stock is currently trading at $59 per share, and PCI’s expected growth rate is 9.8%, what is PCI’s expected return?

◦

15.03%


◦

15.60%


◦

15.80%


◦

16.21%



Question 2

Prock Petroleum’s stock has a required return of 14%, and the stock sells for $68 per share. The firm just paid a dividend of $1.50, and the dividend is expected to grow by 40% per year for the next 4 years, so D4= $1.50(1.40)4= $5.7624. After t = 4, the dividend is expected to grow at a constant rate of X% per year forever. What is the stock’s expected constant growth rate after t = 4; that is, what is X?

◦

7.39%


◦

7.64%


◦

7.85%


◦

8.10%

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by campbellfam07 on Aug 7, 2023

lola.jashay

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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campbellfam07

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

shailee

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Reply 3 on: Yesterday
Wow, this really help

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