JKE Company just paid a dividend of $2 per share (Do)

jagguarpaw January 10, 2017 0 Comments

Question: JKE Company just paid a dividend of $2 per share (Do)

  1. JKE Company just paid a dividend of $2 per share (Do). Future dividends are expected to grow at a constant rate of 8% per year. What is the value of the common stock if the required return is 10%?

(a)  $10.80

(b) $21.60

(c) $100.00

(d) $108.00

Soledad company preferred stock has a market price of 420. If it has a yearly dividend of $1.50. What is your expected rate of return if you purchase the stock?