1 a stock paid 225 in dividends at the end of last year and, Ask an Expert

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1. A stock paid $2.25 in dividends at the end of last year and is expected to pay a cash dividend until infinity. No growth is expected. Investors require a 5.5% rate of return. What is the value of the common stock?

2.25

3.75

37.5

39.75

2. If a firm pays a constant dividend of $3.45 a share and investors require a 12% return, what is the value of the firm's stock?

$12.45

$345.00

$28.75

$34.50

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92164567

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