Author Question: SEC regulations require that corporate stock repurchases must be done in the open market so that ... (Read 101 times)

imowrer

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SEC regulations require that corporate stock repurchases must be done in the open market so that
  all shareholders have an equal opportunity to sell their shares.
 
  Indicate whether the statement is true or false

Question 2

Assume that the average firm in your company's industry is expected to grow at a constant rate of 5, and its dividend yield is 4.
 
  Your company is about as risky as the average firm in the industry, but it has just developed a line of innovative new products which leads to expect that its earnings and dividends will grow at a rate of 40 this year and 25 the following year, after which growth should match the 5 industry average rate. The last dividend paid was 2. What is the value per share of your firm's stock?
  A) 42.60
  B) 82.85
  C) 91.88
  D) 101.15
  E) 110.37


jjorrostieta

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Answer to Question 1

FALSE

Answer to Question 2

B



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