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Author Question: The next dividend on Sciorra stock is expected to be 3.10 per share. Dividends are expected to grow ... (Read 110 times)

leo leo

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The next dividend on Sciorra stock is expected to be 3.10 per share. Dividends are expected to grow at a constant rate of 5 indefinitely. What should the current share price be if Sciorra investors require a return of 15?
 
  A) 32.55
  B) 31.00
  C) 20.67
  D) 21.70
  E) 62.00

Question 2

The expected return on the market is 10, the risk free rate is 5 and Black Magic Cosmetics Inc. has a beta of -1. What is the expected return for Black Magic Cosmetics Inc.?
 
  A) -10
  B) -5
  C) 0
  D) 5
  E) 7.5



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joewallace

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Answer to Question 1

B

Answer to Question 2

C




leo leo

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Reply 2 on: Jul 10, 2018
:D TYSM


Sarahjh

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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