Question
27. New Start Corporation's stock currently sells for $50 per share. The company just paid a dividend $2, and the growth rate is 6%. What
27. New Start Corporation's stock currently sells for $50 per share. The company just paid a dividend $2, and the growth rate is 6%. What is the expected rate of return on this stock? If the stock currently sells for $35.33 per share, what is the expected rate of return?
Question 27 options:
| 10.24%, but not enough information to get the return for the second part. |
| There is not enough information to get the return. |
| 10.24%, 12% |
| 12%, 10.24% |
30.
You are bored during your spring break and decide to analyze a sweepstakes prize. The winnings will be split into 12 monthly payments of $2,000 starting from today. If the annual rate of return you can get at your bank is 3% (i.e. monthly return is 3%/12). what is the present value of these winnings to you?
Question 30 options:
| $29,507.03 |
| $23,673.54 |
| $38,968.98 |
| $20,505.25 |
| $23,614.51 |
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