What is the expected price of stock

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Reference no: EM132006498

1. Based on the following information for a common stock:

Dividend per share just paid (D0) = $4

Required rate of return (Rs) = 10%

Expected constant growth rate (g) = 5%. What is the expected price of the stock?

Select one:

a. $93.75

b. $84

c. $77.84

d. $88.29

2. A debenture is:

long-term debt secured by real estate.

unsecured debt that generally matures in ten years or more.

long-term debt secured by fixed assets of the borrower.

short-term unsecured commercial papers.

Reference no: EM132006498

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