Author Question: Ewert Enterprises stock currently sells for $35.20 per share. The stocks dividend is projected to ... (Read 41 times)

zl00505 · **on:** Aug 7, 2023

Question 1

E.M. Roussakis Inc.’s stock currently sells for $49 per share. The stock’s dividend is projected to increase at a constant rate of 4.62% per year. The required rate of return on the stock, r_s, is 17.8%. What is Roussakis’ expected price 6 years from now?

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$64.25

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$66.50

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$69.35

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$72.00

Question 2

Ewert Enterprises’ stock currently sells for $35.20 per share. The stock’s dividend is projected to increase at a constant rate of 5.1% per year. The required rate of return on the stock, r_s, is 12.9%. What is Ewert’s expected price 4 years from today?

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$37.82

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$40.05

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$42.95

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$45.10

hiyayyay · **Reply #1 on:** Aug 7, 2023

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