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please help me with these three questions A company will pay dividend of $3.50 next year (D = $3.50) and its dividend will grow at
please help me with these three questions
A company will pay dividend of $3.50 next year (D = $3.50) and its dividend will grow at a constant rate of 3.5% every year indefinitely (g = 3.5%). If the company's stock value is $70.00 (Po = $70.00), what is the stock's expected dividend yield for the coming year? 3.50% O 5.00% 8.50% O 20.00% The common stock of Andy's Sporting Goods sells for $100.00 a share (Po = $100.00). The company recently paid their annual dividend of $2.00 per share (Do = $2.00) and expects to increase this dividend by 4 percent annually (g =4.0%). What is the required rate of return on this stock? 2.08% O 4.00% 6.00% 6.08% The preferred stock of Lay's Inc. sells for $150 a share (Po = $150). The company recently paid their annual preferred dividend of $7.50 per share (Do = $7.50). What is the required rate of return on this preferred stock? 5.00% O 7.50% O 11.25% O 20.00% O none of the above Step by Step Solution
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