Currently intel has a 1 dividend yield and has an expected


1. Currently intel has a 1% dividend yield and has an expected growth in stick price (capital gain yield) of 13%. what is the return required by an average investor of intel stock?

a. 14%

b. 13%

c. 12%

d. the market return

e. not enough info

2. Assume that the stock of the Perry corporation has just paid an annual dividend of $5 and is expected to grow indefinitely at an annual growth rate of 10 percent. if shareholders required 13% return on their investment in Perry, how much should this stock be selling for?

a. $ 183.33

b. $217.70

c. $256.81

d. $166.67

e. $ 360.25

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Financial Management: Currently intel has a 1 dividend yield and has an expected
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