FIN 515 Week 6 Test Correct Answers

This document of FIN 515 Week 6 Test Correct Answers includes answers to the next questions:

1. (TCO D) A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate is g = 4.0%. What is the current stock price?

2. (TCO D) If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $50, what is the stock