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Marios Pizza is expected to pay a dividend of $3 per share at the end of year 1 (D1). These dividends are expected to grow a
Zelda Farms currently plows back 40% of its earnings and earns a return of 20% on this investment. The dividend yield on this
The price-earnings ratio of two companies, A and B, are 10 and 20 respectively. For every $1 invested in the stock of company
For the bond above, what is the yield to worst? 1 pts . Question 10 Suppose an investment company has a guaranteed investment
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Answer #1

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Value of stock 01:(r-g) Here, Expected dividend (D1) Required return (1) Growth rate (g) 3.0/ 18% 6% Value of stock $ 25.00 3

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