Question
Little Town Motors stock currently sells for $55.10 per share. The market required return is 14.2 percent while the company maintains a constant 3 percent
Little Town Motors stock currently sells for $55.10 per share. The market required return is 14.2 percent while the company maintains a constant 3 percent growth rate in dividends. What was the most recent annual dividend per share paid on this stock?
- A.
$5.99
- B.
$6.14
- C.
$6.08
- D.
$5.87
- E.
$5.96
The common stock of Little Town Motors has yielded 14.2 percent, 11.7 percent, 3.4 percent, -2.8 percent, and 12.7 percent over the past five years, respectively. What is the geometric average return?
- A.
8.22 percent
- B.
7.91 percent
- C.
7.64 percent
- D.
8.27 percent
- E.
8.03 percent
Little Town
Motors has a dividend growth rate of 5.6 percent, a market price of $14.46 a share, and a required return of 14 percent. What is the amount of the last dividend this company paid?
- A.
$1.30
- B.
$1.05
- C.
$1.15
- D.
$1.60
- E.
$1.55
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