Question
A) AAA, Inc. stock just paid a dividend of $0.30 a share, has a growth rate in dividends of 5%, and has a required return
A) AAA, Inc. stock just paid a dividend of $0.30 a share, has a growth rate in dividends of 5%, and has a required return of 9%. What is the stock's current value? 1) $7.50 2) $3.33 3) $7.88 4) $6.00 B) WWW stock just paid a dividend of $0.40, has a growth rate in dividends of 7% and is currently selling for $50 a share. What is the expected return for WWW stock? 1) 0.93% 2) 5.71% 3) 7.86% 4) 7.80% C) FLD, Inc. stock just paid a dividend of $0.80 a share, has a growth rate in dividends of zero, and has a required return of 8%. What is the stock's current value? 1) $0.10 2) $10 3) $8 4) $15.05 D) Alcan stock just paid a dividend of $0.50, has a growth rate in dividends of zero and is currently selling for $30 a share. What is the e 1) 6% 2) 4.51% 3) 1.67% 4) 5.45%
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