FIN 370 Course Great Wisdom / tutorialrank.com FIN 370 Course Great Wisdom / tutorialrank.com | Page 25
Total firm value will not change .
Price-earnings ratio will be 12.55 .
Retained earnings will increase by $ 462,000 .
The common stock of Dayton Repair sells for $ 43.19 a share . The stock is expected to pay $ 2.28 per share next year when the annual dividend is distributed . The firm has established a pattern of increasing its dividends by 2.15 percent annually and expects to continue doing so . What is the market rate of return on this stock ?
7.67 percent
7.59 percent
7.43 percent
7.14 percent
7.28 percent
Total firm value will not change .
Price-earnings ratio will be 12.55 .
Retained earnings will increase by $ 462,000 .
The common stock of Dayton Repair sells for $ 43.19 a share . The stock is expected to pay $ 2.28 per share next year when the annual dividend is distributed . The firm has established a pattern of increasing its dividends by 2.15 percent annually and expects to continue doing so . What is the market rate of return on this stock ?