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Return on Common Stock
You buy a share of The Ludwig Corporation stock for $21.80. You expect it to pay dividends of $1.01, $1.16, and $1.3323 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $28.02 at the end of 3 years.
a. Calculate the growth rate in dividends. Round your answer to two decimal places.
b. Calculate the expected dividend yield. Round your answer to two decimal places.
c. Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return? Round your answer to two decimal places.
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At time =0 an engineer deposited $10000 into an account that pays interest at 8% per year,, compounded quarterly. If she withdrew $1000 in months 2, 11, and 23, what was the total value of the account at the end of 2 years? Assume NO inter period com..
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