Quiz 4.docx - QUESTION 1 1 Builtrite's common stock is...

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QUESTION 1 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? 1 0 1 2 1 6 6 STION 2
1. 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?
QUESTION 3 1. 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 investors?

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