1. Teder Corporation stock currently sells for $100 per share. The market requires a 13 percent return on the firm's stock.
Required :
If the company maintains a constant 6 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?
$8.87
$6.60
$6.34
$19.06
$7.00
2. Antiques R Us is a mature manufacturing firm. The company just paid a $15 dividend, but management expects to reduce the payout by 10 percent per year indefinitely.
Required :
If you require an 16 percent return on this stock, what will you pay for a share today?
$51.92
$225.00
$57.69
$51.40
$52.44