show work please 1. Exxon Mobil Corp recently paid a dividend of $1.31. Analysts

Question

show work please

1. Exxon Mobil Corp recently paid a dividend of $1.31. Analysts expect the company's earnings to grow at the rate of 5% over the next several years. Using the constant growth valuation model, estimate the company's stock value if investors require 8.5%.

$39.30

$37.43

$28.57

None of the above

2. Funds invested in money market mutual funds are insured by

FDIC

Federal Reserve

National Credit Union Share Insurance Fund

Securities and Exchange Commission

They are not insured

$39.30

$37.43

$28.57

None of the above

2. Funds invested in money market mutual funds are insured by

FDIC

Federal Reserve

National Credit Union Share Insurance Fund

Securities and Exchange Commission

They are not insured

Explanation / Answer

Value of Stock = [Dividend*(1+Growth Rate)] / (Required Return - Growth Rate)

= ($1.31*1.05)/(0.085-0.05) = $39.30

Funds invested in money market mutual funds are insured by

FDIC

FDIC

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