Question: Analysts project that dividends for Consolidated Amalgamated will be $0.80 per share next year and are expected to grow at 3.75% per year indefinately. If

Analysts project that dividends for Consolidated Amalgamated will be $0.80 per share next year and are expected to grow at 3.75% per year indefinately. If investor's have a required return of 7.5%, how much should the stock sell for?

Question 1 options:

	$21.33
	$34.70
	$39.14
	$36.28
	$35.31

Amalgamated Industries' common stock sells for $23 per share and is expected to pay dividends of $6.75 per year for 8 years. After 8 years it will go out of business and and the stock will be worthless. If you buy this stock today, what is your expected compound annual rate of return?

Question 2 options:

	24.15%
	21.73%
	22.22%
	21.25%
	20.77%

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