________ 8. Baker Industrial Supply pays a constant annual dividend of 1.40 per share. The firm’s...

________ 8. Baker Industrial Supply pays a constant annual dividend of 1.40 per share. The firm’s stock is selling for

$32.70 a share and has a market return of 14.08 percent. What is the capital gains yield?

a. 9.80 percent b. 10.71 percent c. 14.04 percent d. 14.08 percent

________ 9. Global Exporters recently announced that it will pay annual dividends of $1.10; $1.25, and $1.30 a share over the next three years, respectively. After that, the firm plans to increase its dividend by 2.5 percent annually. What is one share of this stock worth to you today if you require an 11 percent rate of return?

a. $10.74 b. $11.81 c. $12.11 d. $14.42

Expert Solution

jeff jeffy answered 2 years ago

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