Author Question: If the price of River Bank stock is 35, next year's dividend is expected to be 2.50, and the ... (Read 40 times)

shenderson6 · **on:** Jul 10, 2018

If the price of River Bank stock is 35, next year's dividend is expected to be 2.50, and the required return is 15, what is the expected dividend growth rate?

A) 7.9
B) 5.2
C) 15.0
D) 12.0
E) 13.0

Question 2

The holder of preferred stock is entitled to a constant dividend ________.

A) every period
B) only when earnings are positive
C) only when the stock price increases
D) only when earnings are positive and only when the stock price increases