Corporate FInace Assignment/ Professional Essay Writers

Question 1 (3.3 points) There is a small company that currently does not pay dividends. However, 4 years from now the company is expected to pay an annual dividend of $1.50 (Hint: D4=$1.50). The dividend will then grow by 4% annually forever. Suppose the market requires an annual return of 6% on the company’s stocks, what should be the stock price today?

A) $62.97.

B) $61.78.

C) $59.41.

D) $60.60.

Question 2 (3.3 points) Shane bought 200 shares of a stock at $35 per share six months ago. He received one dividend of $1 per share. The share price right now is $33 per share. What is Shane’s total dollar return?

A) – $200.

B) – $400.

C) – $100.

D) $100.  Get Finance Help Today