1. Two Towers Communications Inc. pays annual dividends of $8.50 with no possibility of it changing in...
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1. Two Towers Communications Inc. pays annual dividends of $8.50 with no possibility of it changing in the next several years. If the firm's stock is currently selling at $65.38, what is the required rate of return? (Round to nearest whole number.) a. 148 b. 16 c. 13% d. 158 2. Smaug Corp. will pay a dividend of s4.75 next year. The company expects its growth rate to be a constant rate of 7 percent. If the required rate of return is 14 percent, what is the current market price of the stock?
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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