Question
13. A company earns $2.00 per share in 2012 and pays dividends 70% (0.70) in 2012. If the firm has ROE 30%, what is the
13. A company earns $2.00 per share in 2012 and pays dividends 70% (0.70) in 2012. If the firm has ROE 30%, what is the expected dividend IN 2013
a. 0.09
b. 0.763
c. 0.08
d. 0.648
14. Bayyoud Corp. is expected to earn $2.00, $2.20, and $2.40 per share in each of the next 3 years. At the end of the third year, the stock is expected to sell at a current yield of 3%. If the corp. dividends payout ratio of 25%. If an investor demands a 15% return for investing in Bayyouds Corp. how much should the investor be willing to pay for the shares today.
a. $14.40
b. $12.68
c. $16.67
15)What is the value of a 6 year, 4.4% coupon rate that pays interest semi-annually if its yield to maturity is 4%.
a. $981.24
b. $1,021.15
c. $1,026.95
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