Medical Corporation of America (MCA) has a current stock price of $35, and its last dividend (Do) was $2.50. In view of MCA’s strong financial position, its required rate of return is 12%. If MCA's dividends are expected to grow at a constant rate in the future, what is the firm's expected stock price in five years? O r d! t bo to 10 rbv
Choice: $43.68
Choice: $48.95 bivio
Choice: $52.100
Choice: $68.75 m m to BOBO on T o n tor
1. A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 6% per year. The stock's required rate of return is 12%. What is the expected dollar dividend at the end of three years? b o Choice: $2.38
Choice: $3.12 al 10 d
Choice: $5. 00
Choice: 12% o 0 leh nne
2. A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2.50 per share. The dividend is expected to grow at a constant rate of 5% per year. The stock's required rate of return is 12%. What would be a price for this stock?
Choice: $32.25
Choice: $37.50
Choice: $43.10
Choice: $45.65
