Turtle Corp has an expected ROE of 10%. The dividend growth rate will be the finn follows a policy of paying 40% of eamings in the form of dividends

a) 6.0% b) 4.8% c) 7.2% d) 3.0%

1. A preferred stock will pay a constant dividend of $2.75 forever. You require a retur of 10% on this stock. The intrinsic value of this preferred stock is: a) $0.275 b) $27.50 c) $31.82 d) $56.25
2. The Wrench Company is expected to pay a dividend of S1:00 in the upcoming year.

Dividends are expected to grow at the rate of 6% per year. The required rate of return is 14.6%. What is the intrinsic value of The Wrench's stock?

a) $14.29

b) $14.60

c) $12.33

d) S11.63