The Alpha Company has an expected dividend next year in the amount of $5.45.

The firm has an expected return of 12.50%.

The current price of Alpha is $78.90

What is the Growth Rate (g) in earnings and dividends for the firm?

4.75%

5.59%

9.56%

6.55%

Question 18

4 Points

DC Stock is currently selling for $236 per share.

The dividend yield on the stock is 2.39%.

The Growth rate on dividends is 5%.

The expected return on the stock is 7.39%

What is the expected dividend on the DC stock?

$6.54

$5.64

$6.45

$7.55

Question 19

4 Points

The Image Company has a bond issue with a coupopn rate of 8.5% with interest paid on

an annual basis. The bond has a par value of $1,000.

It has a maturity of 12 years.

It is current selling at a discount of $897.79.

What is the Current Yield on the bond?

9.47%

10.74%

7.94%

8.87%