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3. Stock are best described as a(n) _____ security that includes a _____ payment. Debt; promised Debt; residual Equity; promised Equity; residual 5. MasksAreUs Inc.

3. Stock are best described as a(n) _____ security that includes a _____ payment.

Debt; promised

Debt; residual

Equity; promised

Equity; residual

5. MasksAreUs Inc. just paid a dividend of $8 per share. Future dividends are expected to grow at a constant rate of 5% per year. What is the value of the stock if the required return is 8%?

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