What is the value of stock with expected dividend

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Reference no: EM132005844

1. If expected dividends grow at 4% and the appropriate discount rate is 12%, what is the value of a stock with an expected dividend of $2.05? (Round your answer to 2 decimal places.)

A. $26.63

B. $25.63

C. $12.81

D. $38.44

2. An issue of common stock's most recent dividend is $3.25. Its growth rate is 5.0%. What is its price if the market's rate of return is 8.1%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

A. $110.08

B. $109.84

C. $52.42

D. $114.84

Reference no: EM132005844

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