What is the return of stock that trades

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Reference no: EM131893911

1. What is the return of a stock that trades at $35, will pay a $0.75 dividend at the end of the year, and grows at a rate of 6%?

8.14%

8.53%

8.97%

9.53%

10.01%

2. Stock X just paid a dividend of $3.00. The dividend is expected to grow at a constant rate of 6% per year. If the required return is 11% and the stock is in equilibrium, then it currently trades at a price of:

$45.48

$50.00

$58.15

$60.83

$63.60

Reference no: EM131893911

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