4)The common stock of Corning Corporation sells for $47.60 a share. The stock is expected to pay $2.10 per share next year when the annual dividend is distributed. Corning has established a pattern of increasing its dividends by 6% annually and expects to continue doing so. What is the market rate of return on this stock?

5)Dover Corporation announced today that its next annual dividend has been set at $2.20 a share. The company also announced that all future dividends will increase by 7% annually. What is the maximum amount you should pay to purchase a share of Dover's stock if your goal is to earn a 14.2% rate of return?

Answer rating: 100% (QA)

4 To calculate the market rate of return on Corning Corporations stock we can use the dividend ... View the full answer