1. Which statement is INCORRECT given the following stock quotes?
Prev Close 44.34 Day’s Range 43.45 – 44.37
Bid 44.01 x 1,200 Volume 908,587
Ask 44.02 x 400 P/E 17.26
Beta 2.4 EPS 2.55
Market Cap 10.11B Div & Yield 0.50 (1.10%)
A. At this point someone was willing to buy 400 shares of this stock for $44.02 a share.
B. So far on this trading day, the total amount of traded volume was $908,587.
C. The total value of this company’s stock is (about) $10,110 million.
D. The dividend yield for this stock is 1.1%.
2. SQT, Inc. currently pays a $2 annual dividend. Investors believe that dividends will grow at 20% next year, 12% for the following year, and 6% annually thereafter. The required return is 10%. What is the current price of the stock?
A. $69.34
B. $63.27
C. $60.80
D. $54.90