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17) NDV Corp.'s common stock is expected to pay a $2 dividend at the end of the year, which will grow at a compound rate

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17) NDV Corp.'s common stock is expected to pay a $2 dividend at the end of the year, which will grow at a compound rate of 4% indefinitely. If the current market price of the stock is $40, what rate of return (Yield) is the market requiring? A) 5 percent B) 9 percent 99.2 percent D) 1 percent 18) The best measure of how well management is doing on behalf of its stockholders is A) the common stock price B) the level of total profits the size of the dividend paid D) the earnings per share 19) Rivolta Fashion Inc. just paid a $1.50 per share dividend on its common stock. The dividend is expected to grow at a constant rate of 7% per year. The required rate of return on the stock is 15%. What is the value per share of the company's stock? A) $18.75 B) $21.56 $20.06 D) $10.70

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