The value of a share of custom machinery common stock

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1. Custom Machinery, Inc. expects a dividend next year of $4.80 per share, their growth rate of dividends is 9 percent, and their required return of 19 percent. The value of a share of Custom Machinery's common stock is

a. $22.04

b. $48.00

c. $28.00

d. $18.67

2. Absolute purchasing power parity is most apt to exist for which one of the following items?

A. A cell phone

B. An ounce of silver

C. A pound of beef

D. A computer

E. An automobile

Reference no: EM131497531

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