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Please answer both questions thank you! Question 1 A common stock paid a dividend of $3.75 this year. It is expected to grow at 8%
Please answer both questions thank you!
Question 1
A common stock paid a dividend of $3.75 this year. It is expected to grow at 8% each year for the foreseeable future. Investors require an 11% return rate. What is the value of a share of this stock?
$135.00 | ||||||||||||||
$125.00 | ||||||||||||||
$22.50 | ||||||||||||||
$3.97 Question 2 A preferred stock pays 3% on its par value of $200, and the required rate of return is 9%. What is the value of the preferred stock?
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