The price of a stock is $65 and is expected to pay a dividend of $5 that will grow at a 3% rate. If the investor require

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answerhappygod
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The price of a stock is $65 and is expected to pay a dividend of $5 that will grow at a 3% rate. If the investor require

Post by answerhappygod »

The price of a stock is $65 and is expected to pay a dividend of
$5 that will grow at a 3% rate. If the investor requires an 11%
rate of return, should the investor purchase the stock?
and
The stock is currently selling at $112.50 and pays a dividend of
$6.50. If dividends grow at a constant 4% rate, what is the stock’s
expected dividend yield, capital gains return, and rate of
return?
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