Question
1. Given the following information, what is the percentage capital gain/loss between today and period 1? Calculate your answer to two decimal places (e.g., 2.51)
1.
Given the following information, what is the percentage capital gain/loss between today and period 1?
Calculate your answer to two decimal places (e.g., 2.51)
If there is a loss indicate this by using a negative number (e.g., -4.29)
| Todays Dividend = | $2.99 |
| Expected Growth rate in dividends = | 4.43 |
| Discount Rate (Required return) = | 8.8 |
2.
Given the information in the table, what is TODAYs price of the stock?
| Todays Dividend | $2.18 |
| Discount Rate | 10.00% |
| Growth rate in dividends 0 to 1 | 9.00% |
| Growth rate in dividends 1to 2 | 5.00% |
| Growth rate in dividends 2 to 3 | 5.00% |
| Growth rate in dividends 3 onward | 4.00% |
3.
Given the information in the table, what is the price of the stock in YEAR 1?
| Todays Dividend | $4.47 |
| Discount Rate | 8.31% |
| Growth rate in dividends 0 to 1 | 9.90% |
| Growth rate in dividends 1 to 2 | 9.11% |
| Growth rate in dividends 2 to 3 | 5.60% |
| Growth rate in dividends 3 onward | 3.14% |
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An Introduction To Financial Markets A Quantitative Approach
Authors: Paolo Brandimarte
1st Edition
1118014774, 9781118014776
