What is the required return on the stock

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1. A stock just paid a dividend of $5.37 and is expected to maintain a constant dividend growth rate of 4.6 percent indefinitely. If the current stock price is $77, what is the required return on the stock??

2. Knightmare, Inc., will pay a dividend of $5.65, $9.75, and $12.95 per share for each of the next three years, respectively. The company will then close its doors. Investors require a return of 10.2 percent on the company's stock. What is the current stock price?

3. Your uncle has 431,000 invested at 6.8% and he now wants to retire. He plans to withdraw $40,000 at the end of each? year, beginning this year.

How many years will it take to exhaust his? funds, i.e., run the account down to? zero?

Reference no: EM131986761

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