Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

36 Westlake Ltd. just paid a dividend of $2 per share, which is expected to grow at a constant rate of 6.5 percent indefinitely. The

image text in transcribedimage text in transcribedimage text in transcribed36

Westlake Ltd. just paid a dividend of $2 per share, which is expected to grow at a constant rate of 6.5 percent indefinitely. The discount rate is 11.5 percent. Calculate Westlake's current share price. Select one: a. $46.05 O b. $41.80 C. $42.60 d. $40.00 You bought 100 shares at $20 each. At the end of the year, you received a total of $250 in dividends, and your stock worth $2,250 total. What was your total return? Select one: a. 45 percent O b. 50 percent O c. 25 percent d. 90 percent Grace Holdings recently paid an annual dividend of $1.50 per share, and its estimated long-term growth rate in dividends is 4 percent. The current market price of each share is $26. The implied rate of return on the share is Select one: O a. 10 percent O b. 13.33 percent O c. 9.77 percent. O d. 12.5 percent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

3rd edition

978-0077639730

Students also viewed these Finance questions

Question

What are the attributes of a technical decision?

Answered: 1 week ago

Question

How do the two components of this theory work together?

Answered: 1 week ago