Question
1. A stock pays a dividend of $0.74 quarterly. If the dividend yield is 7.4%, what is the price of the stock? Enter your response
1.A stock pays a dividend of $0.74 quarterly. If the dividend yield is 7.4%, what is the price of the stock? Enter your response belowrounded to2 DECIMAL PLACES.
2.A company is expected to have earnings per share of $3.2 this year and to pay a dividend of $2.4. The discount rate for the stock is 16.8% and the rate of return on reinvested earnings is 21.2%. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below rounded to2 DECIMAL PLACES.
3.Consider a stock that that has just paida dividend of $2.5. The dividend is expected to grow at a constant rate of 2.4% every year. The current price of the stock is $26.35. What rate of return are investors expecting? Enter your response belowrounded to2 DECIMAL PLACES.
4. A preferred stock will have an annual dividend next period of $1.75 that will be paid each year in perpetuity. The discount rate is 8.6%. What is the current price of the stock? Enter your response belowrounded to2 DECIMAL PLACES.
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