What is the value of the common stock

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Reference no: EM131936432

1. Herrera Motor Inc. paid a ?$3.25 dividend last year. At a constant growth rate of 4 ?percent, what is the value of the common stock if the investors require a rate of return of 18 ?percent?

The value of the Herrera Motor common stock is ?$_______ ?(Round to the nearest? cent.)

2. Given that a? firm's return on equity is 21 percent and management plans to retain 37 percent of earnings for investment? purposes, what will be the? firm's growth? rate?

The? firm's growth rate will be _________ ?(Round to two decimal? places.)

Reference no: EM131936432

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