If Negan Corp. common stock is valued at $40 per share, dividends are paid quarterly and expected to grow quarterly by 1.2% forever, and the next dividend is due in 3 months and expected to be $3, then what is the expected annual return on Negan Corp. stock?

= 33.37%

Explanation:

The computation of expected annual return is given below:-

Price of common stock today = Dividend next year ÷ (Required rate of return - Growth rate)

= $42 = $3 ÷ (required rate of return - 1.2%)

= (required rate of return -1.2%) = 0.071429

= (required rate of return - 1.2%) = 7.1429%

Required rate of return = 8.3429%

Expected of Annual Return = Required rate of return × Quarterly

= 8.3429% × 4

= 33.3716%

or

= 33.37%

So, for computing the expected of annual return we simply multiply the required rate of return with quarterly.

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.

a. primarily outdoors, responding to emergencies and protecting people.

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