Question
Choose the correct answer 6.The common stock of a firm sells for $43.19 a share. The stock is expected to pay $2.28 per share next
Choose the correct answer
6.The common stock of a firm sells for $43.19 a share. The stock is expected to pay $2.28 per share next year (growth already included) when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 2.15% annually and expects to continue doing so. What is the market required rate of return on this stock?
7.59%
7.28%
7.14%
7.43%
7, A firm's currentmarket value is $1,640,000,000 and its annual free cash flow is $75,000,000.Using a required rate of return of 7.8%, compute the market's expected free cash flow growth rate.
A.3.23%
B.7.80%
C.12.37%
D.4.57%
8.A company paid a dividend of $1.85 per share in 2017.The firm is expected to increase its dividend in 2018 by 3%.If you paid $33.60 per share for the stock in 2010, what is your dividend yield for 2018?
A.5.67%
B.5%
C.5.34%
D.5.51%
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