How much will you pay for the company stock today

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Reference no: EM132074139

The next dividend payment by Hot Wings, Inc., will be $4.75 per share. The dividends are anticipated to maintain a 4 percent growth rate forever.

Required:

If the stock currently sells for $54 per share, what is the required return?

12.16%

12.80%

8.80%

12.54%

4.00%

2. Metroplex Corporation will pay a $5.80 per share dividend next year. The company pledges to increase its dividend by 6.20 percent per year indefinitely.

Required:

If you require an 9.80 percent return on your investment, how much will you pay for the company's stock today?

$154.67

$151.71

$167.56

$34.13

$161.11

Reference no: EM132074139

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