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Author Question: When estimating the annual growth rate of a dividend stream, we can use a short-cut to determining ... (Read 59 times)

corkyiscool3328

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on: Jul 10, 2018
When estimating the annual growth rate of a dividend stream, we can use a short-cut to determining the average growth rate by ________.
 
  A) using just the first dividend in the stream and the time-value of money equation
  B) using just the last dividend in the stream and the time-value of money equation
  C) using the first and last dividend in the stream and the time-value of money equation
  D) using the first and last dividend in the stream and the future value interest factor

Question 2

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?
 
  A) 57.50
  B) 62.25
  C) 71.86
  D) 64.00
  E) 44.92


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elizabethrperez

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: C

Answer to Question 2

A


corkyiscool3328

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

amandanbreshears

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Reply 3 on: Yesterday
:D TYSM

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