08.05% 8.62% 9.14% QUESTION 20 Quixy Corp is expected to pay a dividend next year of...

Question

Question

Answer 1

Answer #1

Stock Price = + D1 (1+0)

Where, D1 = Dividend for the next year i.e. $0.77

g= growth rate i.e. 3%

r = Expected Rate of Return

46.51 = = + 0.77 (1.03) (r-.03)

Expected Return (r) = 4.73%

The expected return is 4.73%.

Answer 2

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