Annual cash dividend policy

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Reference no: EM131921729

1. A common stock last paid a dividend of $1.20 and it is expected to grow at 6% for the next 5 years.  If your required rate of return is 10%, what is the most you should pay today?

a. ?$30.31

b. ?$32.71

c. ?$40.15

d. ?$31.80

2. King Waterbeds has an annual cash dividend policy that raises the dividend each year by 66%. The most recent? dividend, Div 0Div0?, was $ 0.35 per share. What is the? stock's price if

a. an investor wants a return of 7%

b. an investor wants a return of 10%

c. an investor wants a return of 11?%

d. an investor wants a return of 12%

e. an investor wants a return of 171%

Reference no: EM131921729

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