Question: Do not do any interim rounding. Choose the best answer. Dividends of $2.95 per share were paid by Overton & Co. over the last twelve

Do not do any interim rounding. Choose the best answer.

Dividends of $2.95 per share were paid by Overton & Co. over the last twelve months. Today the stock price is $63.40, and the company's discount rate is 12.76%. Assuming the constant growth model applies. the dividend growth rate percentage is:

A. 4.65%.

B. 7.75%.

C.12.19%.

The PE ratio is useful because it measures:

A. how much earnings are going to grow.

B. how much an investor is willing to pay for $1 of earnings.

C. how much a stock is expected to earn.

Glck Enterprises anticipates earnings per of share of $2.95 next year, earnings are expected to grow at 3.65% over the next several years and the forward PE is 12.4. Glck's price is closest to:

A. $36.58.

B. $35.29.

C.$37.92.

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