An issue of common stock has an expected dividend to be paid at the end of the year of $5 per share, and has an expected growth rate for the foreseeable future of 5% per year. If investors’ required rate of return for this particular security is 12% per year, how much should it be selling for? Round to the nearest cent. Do not include the dollar sign in your answer. (i. e. If your answer were $1.23, then type 1.23 without a $ sign

Step-by-step explanation:

D1- dividend; Return-12%; Growth rate - 5%

Current price=D1/(Required return-Growth rate)

=5/(0.12-0.05)  = 5/0.07 = $71.43

answer set (b) 0.5, 3/4 80% is in order from least to greatest.  

step-by-step explanation:

in order to compare rational numbers to each other, it is much easier if they are in the same form.   typically, the best form in which to evaluate rational numbers is in decimals.   in order to convert a percent to a decimal, you would divide the given percentage by 100.   you can also accomplish the conversion by moving the decimal point over two places to the left.   for example, the decimal value of 80% is 80/100, or 0.8.   in order to convert a fraction to a decimal, you need to divide the numerator by the denominator.   for example, 3/4 is 0.75.   so, for choice (b) 0.5 3/4 (0.75), 80% (0.8) is the only choice in which the numbers are in order from least to greatest.