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You have 500 shares of Royal Oil. Royal is expected to pay a dividend next year of $2.38. The expected dividend growth rate is 6%
You have 500 shares of Royal Oil. Royal is expected to pay a dividend next year of $2.38. The expected dividend growth rate is 6% per year forever. Another of your friend has 600 shares of Light House. It has an expected growth rate in dividends of 4% per year forever. It sells for $51.875. It is expected to pay a dividend of $3.35 per share next year. Answer the below questions. (1) If Royal is selling for $29.45 per share, what is your expected return on Royal Oil? (2) What is your friend expected return on Light House?
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