QUESTION 2
During the past 8 years, UTX Company common stock dividends have
grown from $2.70 to $5.00 per share (currently). Determine the
value of UTX common stock to an investor who requires a 16% rate of
return, assuming that dividends continue growing for the
foreseeable future at the same rate as over the past 8 years.
$46.96
$62.50
$31.25
$67.50
0.5 points
QUESTION 3
During the past 8 years, Beef Wellington Cattle Company's common
stock dividends have grown from $2.00 to $3.19. Estimate the
compound annual dividend growth rate over the 8-year period.
19%
59.5%
12%
6%
0.5 points
QUESTION 4
Dillinger Inc. is planning to raise additional capital for
expansion by selling 500,000 common shares at $16 each. The
existing stockholders' equity section of its balance sheet is shown
below. What will the retained earnings figure be immediately after
the sale of the new equity?
$3,000,000
$6,500,000
$4,752,000
$14,252,000
$14,000,000
$12,252,000
$4,752,000
$3,500,000
0.5 points
QUESTION 5
In the constant growth dividend valuation model, it is assumed
that the ____.
firm is experiencing a period of poor performance, after which
normal growth is expected
dividend growth rate exceeds the required rate of return
firm's future dividend payments are expected to grow at a
constant rate forever
dividend cannot be forecast for any future time
QUESTION 2 During the past 8 years, UTX Company common stock dividends have grown from $2.70 to $5.00 per share (current
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am