Question
A) YYY stock just paid a dividend of $0.50, has an expected growth rate in dividends of 7% forever, and is currently selling for $30
A) YYY stock just paid a dividend of $0.50, has an expected growth rate in dividends of 7% forever, and is currently selling for $30 a share. What is the expected return for YYY stock? 1) 8.78% 2) 8.67% 3) 2.96% 4) 6.45% B) TTT, Inc. stock just paid a dividend of $3.00 a share. It has a required return of 12%. What is the stock's current value if the stock is expected to have zero growth in dividends? 1) $1.20 2) $12.00 3) $2.50 4) $25.00 TTT, Inc. stock just paid a dividend of $3.00 a share. It has a required return of 12%. What is the stock's current value if the stock is expected to have a constant growth in dividends of 8%? 1) $75.00 2) $81.00 3) $37.50 4) $48.02 D) AXE, Inc. paid a dividend of $2.00 last year. The current stock price is $32.00 per share. What is the rate of return for this stock if the stock is expected to have a zero growth in dividends? 1) 6.25% 2) 5.45% 3) 0.63% 4) 5.04% E) AXE, Inc. paid a dividend of $2.00 last year. The current stock price is $32.00 per share. What is the rate of return for this stock if the stock dividend is expected to grow at a constant rate of 10% per year? a) 16.88% b) 16.25% c) 15.08% d) 15.88
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