Stock Quiz.docx - Question 1 2 2 pts A constant growth stock is expected to pay a dividend of $3.72 next year and its dividend yield is 4 What is the

Stock Quiz.docx - Question 1 2 2 pts A constant growth...

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Question 1 2 / 2 pts A constant growth stock is expected to pay a dividend of $3.72 next year, and its dividend yield is 4%. What is the price of the stock today? Round your answer to 2 decimal places, for example $10.12. Correct! Correct Answer 93 margin of error +/- 0.05% Question 2 0 / 2 pts GDL just paid a dividend of $1.48 per share. You expect dividend to grow 13% for the next 3 years, 10% the year after that, and then grow at 4% per year forever. If the required return is 12%, what is the price of the stock today? Round your answer to 2 decimal places, for example $10.12. You Answered Correct Answer 25.42 margin of error +/- 0.1% Question 3 0 / 2 pts Dividends at FSL are expected grow at a rate of negative 3% per year (the dividends are getting smaller). The stock just paid a dividend of $2.57 per share, and investors require a return of 13% to invest in the company. What is the expected price of the stock next year? Round your answer to 2 decimal places, for example $10.12.
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  • Fall '08
  • Olander
  • Quiz, Fin300, Spr 19, Glenn Williams

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