You just paid a dividend of $1.50 a share. For the next 3 years, earnings growth rate is projected to be 15% each year, and then 4% each year thereafter. With a required rate of return is 9%, find the value of the stock

• $35.15
• $38.63
• $43.88
• $41.65

John wants to purchase a stock that is selling for $50. The expected price of the stock in a year is $45, and during the coming year a $2 dividend is expected to be paid. The risk-free rate is 5% and the market return is 10%. The stock has a beta of 0.85. Find the holding period return of the stock.

• 14.0%
• 13.5%
• 9.3%
• -6.7%
• -6.0%