Author Question: A stock just paid a dividend of 1.15, has a required rate of return of 10, and a constant dividend ... (Read 106 times)

panfilo · **on:** Jul 10, 2018

A stock just paid a dividend of 1.15, has a required rate of return of 10, and a constant dividend growth rate of 3. What price should this stock be selling for?

A) 16.92
B) 15.20
C) 8.50
D) 8.20
E) 17.15

Question 2

When the conclusion of the capital asset pricing model is graphed, the resulting line is called the ________.

A) Beta
B) Capital Market Line
C) Characteristic Line
D) Efficient Set
E) Security Market Line