Question
1-Alex's Ventures, Inc. stock has a 13%rate of return and a current market price of $16.18. The company pays annual dividends. The last dividend paid
1-Alex's Ventures, Inc. stock has a 13%rate of return and a current market price of $16.18. The company pays annual dividends. The last dividend paid was $1.40 per share. What is the growth rate of this stock? 2-C and F Fabrics is going to pay an annual dividend of $1.36 per share next year. The dividends have been increasing by 2% annually and this trend is expected to continue. The stock is currently selling for $15.11 per share. What is the market rate of return on this stock? 3-The Thomas Co. is in a declining industry and has just announced that it will be reducing its annual dividend by 2% annually from now on. The last dividend paid was $1.60. The market rate of return on this stock is 6%. What is the market price of one share of Thomas Co. stock? 4-JLE, Inc. just paid an annual dividend of $1.10 a share. JLE's policy is to increase the dividend by 2% annually. How much should we pay today for a share of this stock if we require an 11% rate of return?
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