1. You are trying to determine the appropriate price t pay for a share of common stock. If you purchase this stock, you plan to hold it for 1 year. At the end of the year you expect to receive a dividend of $5.50 and to sell the stock fro $154. The appropriate rate of return for this stock is 16 percent. What should be the current price of this stock?
A. $137.50
B. $150.22
C. $162.18
D. $98.25
2. Centry Airlines has an annual cash dividend policy that raises the dividend each year by 5?%. The most recent? dividend, Div 0?, was $ 0.35 per share. What is the? stock's price if
a. an investor wants a return of 6?%?
b. an investor wants a return of 9?%?
c. an investor wants a return of 11?%?
d. an investor wants a return of 14?%?
e. an investor wants a return of 17?%?