1. What is the average annualized compounded return of a stock given the information below:
Stock Price on 02/01/2014 = 22.67 per share
Stock Price on 04/30/2014 = 22.77 per share
Cash Dividend Received 03/30/2014 = .12 per share
3.88%
2.94%
2.91%
3.94%
2. The common stock of a firm sells for $77.77 per share. The stock is expected to pay $1.89 per share next year (current dividend plus next year's growth) when the annual dividend is distributed. The market rate of return on this stock is 7.32%. What is the market's expected future growth rate of the dividend?
2.43%
9.75%
7.32%
4.89%