Use the information to answer the following questions. Thames Inc.'s last dividend was $3...
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Use the information to answer the following questions. Thames Inc.'s last dividend was $3 per share. The dividend is expected to grow at 6% per year. The stock currently sells for $30 per share. What is the estimated (predicted) rate of return of the stock today? Group of answer choices
13.0% 12.6% 11.0% 16.6% 5.2%
Continued from the previous question. What is the dividend yield of the stock in year 1?
Group of answer choices 4.2% 10.6% 8.0% 11.0% 9.0%
Continued from the previous question. You will purchase the stock at $30 if the required return rate on the stock is _______.
Group of answer choices Larger than 13.9% Larger than 14.2% Smaller than 15.0% Smaller than 16.7% Larger than 12.2%
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