Questions 32

as a dividend yield of 12%. The stock pays a dividend of S3 per share. Determine tock ( no other information need to solve this problem ) b)S30 0)525 0S40 d)S40 30) Determine the required rate of return using the constant growth model. A stock paid a dividend this year of $2. Dividends are growing at 5% a year and the stock is selling for$30. a)10% b)12% c)14% d) 9% 31)Stocks that are very liquid in the market, tend to havebetween Bid and Ask prices, while stocks which are not traded much due to lack of interest by investors, and are not very liquid, tend to have a) wide spread; narrow or small spread b) narrow or small spread ; wide spread 32) Find the life of the bond in years. Bond is priced at $899.70. Coupon rate is 8%. Yield to maturity is 9.25% a)30 years b)20 years c)15 years d)25 years