Question 5 You own J8 common stock which is currently trading at $165 per share and is expected to increase at a constant 3% per year, forever. The next expected dividend (D) is $5, therefore based on this information and the fact that you require a 7% return you should: Buy more stock because the expected return is less than your required return. Buy more stock because the expected return is greater than your required return. Sell the stock because the expected return is greater than your required return. Sell the stock because the expected return is less than your required return. Previous Good to Question 6 Aartie Inc. preferred stock has $100 par value, 7% dividend, and is selling for $200 per share. What is your expected rate of return on this investment if you buy it today? Need to know the growth rate in dividends. 35% 30% Previous Question All Inc. common stock is currently selling for $32 per share and is expected to pay a dividend of $1.90 one year from now. The growth rate in dividends is expected to remain constant 12% per year, indefinitely. The expected rate of return on this stock is closest to? 15% 185 796 Previous