Question: 5. A common share price is expected at the end of the year to be $ 75. This stock last year paid a dividend of
5. A common share price is expected at the end of the year to be $ 75. This stock last year paid a dividend of $ 4 and growth of 9% is expected at the end of the year. The investor expects to hold the common stock for a period of one year and sell it at the end of the year. The investor also expects a return of 11%. Calculate the value of that common share for that investor. 6. A common share is currently selling for $ 25.00. The company anticipates constant growth of 11% and a dividend at the end of the year of $ 2. 7. What will be its return if the investor buys the stock for $ 25.00? 8. If the investor requires a 15% return, should the investor purchase that share? Explain the rationale for your answer. 9. A company's common stock paid a dividend of $ 3.00 last year. If the company expects steady growth of 6%, what will be the value of the common share if the investor requires a 15% return? 10. A company has a return per common share (ROE) of 18% and a retention rate is expected for future investments of 40%, what will be the growth for that company
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