Question
Answer all 3 questions 1) Magnetic corporation expects dividends to grow at a rate of 16.39% for the next two years. After two years, dividends
Answer all 3 questions
1) Magnetic corporation expects dividends to grow at a rate of 16.39% for the next two years. After two years, dividends are expected to grow at a constant rate of 5.23%, indefinitely. Magnetics required rate of return is 12.45% and they paid a $2.57 dividend today. Compute the following for magnetic corporation's common stock:
a) dividend at end of year 1
b) dividend at end of year 2
c) dividend at end of year 3
d) price of stock at end of year 2
e) price of stock today
2) what is the total percentage return for an investor who purchased a stock for $5.65, received $2.07 in dividend payments, and sold the stock for $10.38?
3) A stock had the following annual returns of 17.32%, 27.92%, -17.26%, and -12.70%. Compute the following for the stock:
A) expected return:
b) variance:
c) standard deviation
DON'T ROUND UNTIL FINAL ANSWER. FINAL ANSWER round 4 decimals.
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