Common stock is expected to pay dividend

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1. Clayton Corporation common stock is expected to pay a dividend of $2.95 in one year. Company earnings and dividends are expected to grow at an annual rate of 9 percent. If you can buy this stock for $34.71, what is your expected return?

2. If the current US-Chinese real exchange rate is 0.92, drawing on insights from empirical studies of PPP, approximately what will be the US-Chinese real exchange rate in two years?

Reference no: EM132012389

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