1 etling incs dividend is expected to grow at 7 for the, Ask an Expert

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1. Etling Inc.'s dividend is expected to grow at 7% for the next two years and then at 3% forever. If the current dividend is $3 and the required return is 16%, what is the price of the stock?

a. $25.10

b. $26.15

c. $27.58

d. $25.54

e. $29.45

2. This morning, Alicia bought a ten-year 6% coupon bond that pays interest semi-annually. She paid $994 for a $1,000 bond. If the market interest rate on this type of bond declines to 5.5% tonight, how much will Alicia receive for her first interest payment?

a. $60.00

b. $35.00

c. $69.58

d. $30.00

e. $65.00

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92857975

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