The common stocks Suraya Company currently pays dividend of $2 per share. and the dividend is expected to grow at 15% per year. If the market price of the share is 40/ each.

What is the cost of Suraya Company's shares? 

XYZ Limited common stocks is expected to pay dividend of $2 per share which will grow at a rate of 4% in the long run.  

a.) If the market requires a 14% return what should be the current market price of the stock?

 b.) If the current market price of the stock is $40.

What rate of return is the marker requiring?

Answer rating: 100% (QA)

For Suraya Company Using the constant growth model we have Cost of Suraya Companys shares Dividend C... View the full answer