Question: Suppose Microsoft, Inc. is trading at $27.29 per share. It pays an annual dividend of $0.32 per share, which is double last years dividend of

Suppose Microsoft, Inc. is trading at $27.29 per share. It pays an annual dividend of $0.32 per share, which is double last year’s dividend of $0.16 per share. If this trend is expected to continue, what is the required return on Microsoft?

eBay, Inc., went public in September of 1998. The following information on shares outstanding was listed in the final prospectus filed with the SEC.

In the IPO, eBay issued 3,500,000 new shares. The initial price to the public was $18.00 per share. The final first day closing price was $44.88.

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