Question: A. A common stock will pay a $3.20 dividend, expected to grow at a constant rate of 2%. If the stock sells for $27, what

A. A common stock will pay a $3.20 dividend, expected to grow at a constant rate of 2%. If the stock sells for $27, what is the return?

13.34%

12.21%

14.49%

13.85%

none of these

B. A 5% perpetual bond sells for $785. What is the yield (annualized) for the bond?

3.49%

5.09%

5.38%

6.37%

none of these

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