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65.) A large international financial institution is expected to pay a $10.16 dividend in one year. The growth rate is 4.9% and the institution's current
65.) A large international financial institution is expected to pay a $10.16 dividend in one year. The growth rate is 4.9% and the institution's current market value is $181.34. The shareholders required return is closest to:
a. 5.6%.
b. 7.8%.
c. 10.5%.
d. 11.9%.
66.) An issue of preferred stock pays an annual dividend of $4.29 while the firm's preferred shareholders require an 8.1% return. The value of this firm is closest to:
a. $43.82.
b. $52.96.
c. $58.03.
d. $62.73.
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