CFA-Level-I Exam Question 351

ABC Corporation just paid a dividend of $1.25 per share. These dividends are expected to grow at
2 3% over the next three years and thereafter come in line with its long term normalized growth rate of 7%.
If investors currently require a 13% rate of return from this stock, what is the best estimate of ABC's current stock price?
  • CFA-Level-I Exam Question 352

    Jason has $500 in a savings account which earns 5% compounded annually. How much additional interest would he earn in four years if he moved the money to an account which earns 6%?
  • CFA-Level-I Exam Question 353

    In 2008 an American taught spoken English in China and he made $30,000 that year. When he came back to the US he brought with him $25,000 home and then bought a new computer for $2,000 and an used car for $12,000. He then deposited the rest of the money in his bank account. Through the series of transactions the amount counted towards US GDP should be:
  • CFA-Level-I Exam Question 354

    DuPont analysis generates which ratio?
  • CFA-Level-I Exam Question 355

    When a market is in long-run equilibrium, then