What must be expected growth rate of the company dividends

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Reference no: EM131991126

1. McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $832,500, and $1,215,000 over the next three years. What is the payback period for this project?

2. BMM industries pays a dividend of $1.30 per quarter. The dividend yield on its stock is reported at 4.10%. What is the stock price? (Round your answer to 2 decimal places.) Stock price …………

3. Arts and crafts, Inc. will pay a dividend of $3 per share in 1 year. It sells at $30 a share, and firms in the same industry provide an expected rate of return of 16%. What must be the expected growth rate of the company’s dividends? (Do not round intermediate calculations. Enter your answer as a whole percent.) Expected growth rate ……………..%

Reference no: EM131991126

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