What is the expected price of the stock three years from now

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Question 1: A share of preferred stock pays a dividend of P0.25 each quarter. If an investor is willing to pay P40.00 for this preferred stock, what is the nominal annual rate of return?

Question 2: Chimes Company's stock is currently trading at P18 per share. The share's dividend is projected to increase at a constant rate of 5% per year. The required rate of return on the stock computed at 10%. What is the expected price of the stock 3 years from now?

Reference no: EM132831238

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