What rate is the dividend growing

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Reference no: EM132011760

1. You purchased shares of stock one year ago at a price of $63.80 per share. During the year, you received dividend payments of $2.03 and sold the stock for $70.92 per share. If the inflation rate during the year was 2.59 percent, what was your real return?

2. Hot Teas common stock is currently selling for $41.04. The last annual dividend paid was $1.31 per share and the market rate of return is 11.2 percent. At what rate is the dividend growing?

3. Suppose a stock currently pays a dividend of $1.30, which is expected to grow 30% per year for the next five years. What will be the dividend in 5 years? Show your work

Reference no: EM132011760

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