Illustrate what is its nominal annual rate

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Reference no: EM13130766

1. (TCO D) A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 11.4%, what is the stock price?

2. TCO D) If D = $2.25, g (which is constant) = 3.5%, and P = $50, what is the stock’s expected dividend yield for the coming year?

3. (TCO D) Carter's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $45.00, what is its nominal (not effective) annual rate of return?

Reference no: EM13130766

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