Question
9) A stock is bought for $29 and sold for $36 1 year later, immediately after it has paid a dividend of $3. What is
9) "A stock is bought for $29 and sold for $36 1 year later, immediately after it has paid a dividend of $3. What is the capital gain rate for this transaction? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer."
10) "A stock is expected to pay $11 per share every year indefinitely. The current price of the stock is $400. The equity cost of capital for the company is 8%. What price would an investor be expected to pay per share 2 years into the future? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."
really need help with these question please help
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started