Example of source of systematic risk

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Reference no: EM131334168

1. TNT, Inc., forecasts the dividend one year from now at $3.24. The dividends are expected to grow at 2.5% per year, indefinitely. If you require a 7.5% rate of return on this stock, what is the most you will pay for the stock?

a. $43.20

b.$44.28

c. $64.80

d. $66.42

2. Which of the following is not an example of a source of systematic risk

a. interest rate changes

b. foreign competition with an industry's products

c. changes in the overall economic outlook

d. changes in the inflation rate

Reference no: EM131334168

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