Question
Question 8 (1 point) Garville Corporation has a current stock price of $7.43 and is expected to sell for $8.14 in one year's time, immediately
Question 8 (1 point)
Garville Corporation has a current stock price of $7.43 and is expected to sell for $8.14 in one year's time, immediately after it pays a dividend of $0.35. Which of the following is closest to Garville's equity cost of capital?
a. 4.8%
b. 6.1%
c. 6.7%
d. 9.6%
e. 14.3%
Question 9 (1 point)
Herring Fisheries plans to pay $0.65 per share in dividends in the coming year. If its equity cost of capital is 11%, and dividends are expected to grow by 2.5% per year in the future, what is the value of Herring's stock?
a. $24.05
b. $7.84
c. $5.91
d. $7.65
e. $26.00
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