Question: Answer 2 MCQ please, and write down the work or explanation please because it is very urgent! A company has just paid a dividend of
Answer 2 MCQ please, and write down the work or explanation please because it is very urgent!
A company has just paid a dividend of $1.40 per share. Dividends are expected to grow at a rate of 5% per year for the foreseeable future. If the required return is 10%, what is the value of one share of the companys stock? A. $14.00 B. $ 15.25 C. $ 25.80 D. $ 28.00 E. $ 29.40
It is more difficult to value a stock than it is to value a bond because: ______________
A. The future cash flows of stock are known. B. The life of an equity security is limited. C. The required market rate of return on a stock is known in advance. D. Equity securities have no maturity date. E. The maturity value of a stock is known
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