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Author Question: A stock just paid a dividend of $1.15, has a required rate of return of 10%, and a constant dividend ... (Read 87 times)

ts19998

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Question 1

A share of common stock has just paid a dividend of $2. If the expected long-run growth rate for this stock is 15%, and if investors require a 19% rate of return, what is the price of the stock?
◦ $57.50
◦ $62.25
◦ $71.86
◦ $64.00
◦ $44.92

Question 2

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?
◦ $16.92
◦ $15.20
◦ $8.50
◦ $8.20
◦ $17.15


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Marked as best answer by ts19998 on Apr 25, 2021

FergA

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ts19998

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it


chereeb

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Reply 3 on: Yesterday
Excellent

 

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