1. (4 Points) A stock is expected to pay a dividend of $0.75 at the end of...
Fantastic news! We've Found the answer you've been seeking!
Question:
1. (4 Points) A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?
A. $7.6 |
B. $19.46 |
C. $10.0 |
D. $18.29 |
2. (4 Points) The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price?
A. $1.25 |
B. $28.9 |
C. $30.64 |
D. - $454.55 |
Posted Date: