What is return shareholders are expecting

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Reference no: EM131900706

1. Paychex Inc. (PAYX) recently paid an $0.80 dividend. The dividend is expected to grow at a 15 percent rate. The current stock price is $50.91. What is the return shareholders are expecting? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Shareholders return = %

2. Financial analysts forecast Safeco Corp.’s (SAF) growth rate for the future to be 10 percent. Safeco’s recent dividend was $1.45. What is the value of Safeco stock when the required return is 12 percent?

Value of stock = $

Reference no: EM131900706

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