Author Question: A share of common stock has an expected long-run constant growth rate of 10 percent and is currently ... (Read 120 times)

asd123 · **on:** Apr 25, 2021

Question 1

A share of common stock has a current price of $82.50 and is expected to grow at a constant rate of 10 percent. If you require a 14% rate of return, what is the current dividend of this stock?
◦ $3.00
◦ $3.30
◦ $4.29
◦ $4.75
◦ $6.13

Question 2

A share of common stock has an expected long-run constant growth rate of 10 percent and is currently priced at $66 per share. If investors require 15% rate of return, what was the last dividend paid on the stock?
◦ $2.20
◦ $1.95
◦ $6.15
◦ $3.00
◦ $3.30

abctaiwan · **Reply #1 on:** Apr 25, 2021

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