What is your expected rate of return if you purchase stock

Reference no: EM131488361

Question: 1. (Common stockholder expected return) If you purchased 125 shares of common stock that pays an end-of-year dividend of $3, what is your expected rate of return if you purchased the stock for $30 per share? Assume the stock is expected to have a constant growth rate of 7 percent.

2. (Common stockholder expected return) Ziercher executives anticipate a growth rate of 12 percent for the company's common stock. The stock is currently selling for $42.65 per share and pays an end-of-year dividend of $1.45. What is your expected rate of return if you purchase the stock for its current market price of $42.65?

Reference no: EM131488361

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