The current market price of an equity share of a company is OMR 70. The expected dividend per share is OMR 5.50. If the cost of equity is 14.85%, what would be the expected growth rate in dividends? a. 5.39% b. 7.85% c. 7% d. 5.5%

D Question 4 A firm has an ROE of 18% and a market-to-book ratio of 1.82. Based on this information, calculate the firm's P/E. Note: Enter your answer rounded to the nearest second digit after the decimal point. For example, if the calculated P/E is 11.78429, en

9

aa.9

Q5

stion24 ion24 Reddick Enterprises' stock currently sells for $35.50 per share. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock (I/Yr) is 9.00%. What is the stock's expected dividend in 3 years (Div3)? O 1.46 O 224 O 1.76 O 2.00 O 1.24

a. 1.33 b. 1.50   c. 2.67   d.1.67

Question 31: An analyst has assembled the following information regarding Net-Zone Incorporated and the market in general: Net-Zone dividend (paid yesterday) $2.15 per share Net-Zone expected dividend growth 3% per year Net-Zone expected ROE 16.2% Net-Zone beta 1.8 Net Zone long-term bond yield 8.6% 10.7% Expected return on S&P 500 Index 30-day Treasury bill yield 10-year Treasury bond yield 3.5% 4.8% When reviewing the data provided by the analyst, the CFO of Net-Zone was surprised by the value of the company's beta. The CFO understands that the beta value is an indicator of risk, and investors need to be compensated for their risk of investing. The company's current stock price is just under $17 per share, which the CFO believes is too low considering the company's increased profit margins. If the CFO believes the stock price should be no less than $25 per share, and assuming the CFO is correct, that would imply that the company's beta is a) 1.22 b) 1.19 c) 1.13 d) 1.16

Qa 07.

F2