Question
1. stock x just paid a dividend of $5.80. if you require a 15% return on equity, and if you expect dividends to grow indefinitely
1. stock x just paid a dividend of $5.80. if you require a 15% return on equity, and if you expect dividends to grow indefinitely at 2.5% per year, what is the most that you will pay for stock x?
2. stock y just paid a dividend of $4.20. if the stock sells for $100, and if you expect the stock to grow at 3% per year indefinitely, what is your required rate of return on equity?
3. you expect stock a to pay a dividend of $5. if the stock sells for $60, and if you require a 12% return on equity, what is the expected dividend growth rate?
4.stock b sells for $300. you expect its dividends to grow at 4% indefinitely, and you require an 11% return on your equity investment. what was the most recent dividend?
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Differential Equations And Linear Algebra
Authors: C. Edwards, David Penney, David Calvis
4th Edition
013449718X, 978-0134497181
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