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1. Tpsis is expected to grow at a constant rate of 6% a year into the indefinite future. Its next dividend is expected to be
1. Tpsis is expected to grow at a constant rate of 6% a year into the indefinite future. Its next dividend is expected to be $2.25 a share. The rate of return on stocks similar to Tpsis is about 11%. What should a share of Tpsis sell for today? O a) S43 O b) $45 O c) 546 O d) $50 O e) None of the above 2. Saman Co. has an issue of preferred stock outstanding that pays a $5.50 dividend every year in perpetuity. If the required return of this stock is 5%, what is the selling price per share? O a) $110 Ob) $112 O c) $113 O d) $114 O e) None of the above
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