What is the required return on the company stock

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A. A stock is selling for $12.80 a share given a market return of 18.5 percent and a capital gains yield of 6.8 percent. What was the amount of the last annual dividend that was paid?

B. A stock is selling for $50 a share. There are 215,000 shares outstanding and the net income of the firm is $567,000. What is the P/E ratio?

C. Tell Me Why Co. is expected to maintain a constant 3.8 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 5.6 percent, what is the required return on the company’s stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM132005748

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