FIN 300 Stock Quiz 4 answers(1).doc - There are two...

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There are two versions of the quiz. One question is showing with both versions being worked out after the question. 1. Builtrite's common stock is currently selling for $84 a share and the company has reported earnings per share of $7. What is Builtrite's PE ratio?
2. Builtrite just paid a dividend of $3 a share and expects dividends to continue growing at 4% annually. Investors require a 9% rate of return on Builtrite stock. What would you expect Builtrite stock to sell for?
3. Builtrite preferred stock just paid a dividend of $4 for their preferred stock selling for $72 a share. What is the approximate required return for

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