Question: Using the dividend yield, calculate the closing price for Tootsie Roll on this day. The actual closing price for Tootsie Roll was $24.48. Why is

Using the dividend yield, calculate the closing price for Tootsie Roll on this day. The actual closing price for Tootsie Roll was $24.48. Why is your closing price different? The Value Line Investment Survey projects a 5.5 percent dividend growth rate for Tootsie Roll. What is the required return for the stock using the dividend discount model and the actual stock price?

(The 52-week Hi and Lo are the highest and lowest stock prices over the previous 52 weeks).

52-Week Price Div Close Stock (Div) 13.09 32.90 151.71 Arch Coal 0.44 Laclede Group 1.66 IBM 3.00 CPenney 0.80 Tootsie Roll 0.32 22.82

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