1. Business
  2. Finance
  3. last year wilderness adventures paid an annual dividend of 370...

Question: last year wilderness adventures paid an annual dividend of 370...

Question details

Last year, Wilderness Adventures paid an annual dividend of $3.70 per share. The firm recently announced that it will increase its dividend by a constant 12.5 percent annually. What is one share of this stock worth today at a required rate of 17.8 percent?

$78.05

$79.63

$78.54

$79.75

Excelor stock is expected to pay $2.80 per share as its next annual dividend. The firm has a policy of increasing the dividend by 10.0 percent annually. The stock has a market price of $13.61 and a beta of 2.6. The market risk premium is 8.54 percent and the risk-free rate is 4.80 percent. What is the cost of equity?

27.71 percent

28.14 percent

29.18 percent

28.79 percent

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution