Question: QUESTION 1 AA Co. has forecasted its next dividend (to be paid in one year) to be $2.00 per share. It is expected that dividends

QUESTION 1 AA Co. has forecasted its next dividend (to be

QUESTION 1 AA Co. has forecasted its next dividend (to be paid in one year) to be $2.00 per share. It is expected that dividends will grow by 4% indefinitely. Assuming a discount rate of 12%, what is the current price of AA Co.? 25 26 18.67 16.67 QUESTION 2 Shoyo Co. has just paid a dividend of $0.52. Next year's dividend is expected to be 15% higher and remain at this level indefinitely. Assuming a shareholders require a rate of return of 20%, what is the price of stock today? 2.99 11.96 10.40 2.60

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