Author Question: The common stock of Big Birds Unlimited has a required return of 8 percent and a growth rate of 4 ... (Read 73 times)

nummyann · **on:** Apr 25, 2021

Question 1

Swiss Cheeses, Inc. has paid annual dividends of $1.00, $1.04, $1.09, and $1.15 per share over the last four years, respectively. The stock is currently selling for $42 a share. What is this firm's cost of equity?
◦ 7.45 percent
◦ 7.64 percent
◦ 7.83 percent
◦ 7.87 percent
◦ 8.02 percent

Question 2

The common stock of Big Birds Unlimited has a required return of 8 percent and a growth rate of 4 percent. The last annual dividend was $.60 a share. What is the current price of this stock?
◦ $7.50
◦ $7.80
◦ $10.00
◦ $15.00
◦ $15.60

flexer1n1 · **Reply #1 on:** Apr 25, 2021

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