Question 9

Question 10

Prestige Worldwide is expected to pay $1.03 in dividends next year. The company just paid dividends of $1. If the growth rate is expected to continue, how much should be paid for Prestige Worldwide stock just after the dividend if the appropriate discount rate is 5%. O $21.50 O $20.00 O $51.50 $34.75 You are considering the purchase of a certain stock. You expect to own the stock for the next four years. The current market price of the stock is $24.50 and you expect to sell it for $55 in four years. You also expect the stock to pay an annual dividend of $1.25 at the end of year 1, $1.35 at the end of year 2, $1.45 at the end of year 3 and $1.55 at the end of year 4. What is your expected return from this investment? 26.68 percent None of these choices are correct. 0 21.78 percent O 18.36 percent