A stock will pay a dividend next quarter of 3.0 and trades for $49. If the stock dividend will grow at 0.4% per quarter, what is the required return on the stock as an annual rate compounded quarterly? Answer: Check A stock has an expected return of 10.6% per year compounded quarterly. It just paid a $5.5 quarterly dividend that is expected to grow at 0% per quarter for the next three years. After that growth will be 0.8% per quarter. What is the market price of this stock? Answer: Check