Author Question: If the current price of Thaler-Made Furniture is $25 per share and next year's dividend is expected ... (Read 85 times)

Diane · **on:** Apr 25, 2021

Question 1

Haugen-Dass Ice Cream just paid a $2.00 dividend and expects to increase it by 5% each year. If the required return is 17%, what is its dividend yield (i.e., what is D1/P0)?
◦ 12.00%
◦ 11.90%
◦ 11.40%
◦ 12.33%
◦ 13.01%

Question 2

If the current price of Thaler-Made Furniture is $25 per share and next year's dividend is expected to be $1.75 per share, what is the required return if dividends are expected to grow 5% per year?
◦ 24%
◦ 12%
◦ 32%
◦ 14%
◦ 2%

sokh · **Reply #1 on:** Apr 25, 2021

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