Question
1. Given the information in the table, what is the dividend yield from t=0 to t=1? Todays Dividend $3.11 Discount Rate 7.96% Growth rate in
1.
Given the information in the table, what is the dividend yield from t=0 to t=1?
| Todays Dividend | $3.11 |
| Discount Rate | 7.96% |
| Growth rate in dividends 0 to 1 | 6.21% |
| Growth rate in dividends 1 to 2 | 9.48% |
| Growth rate in dividends 2 to 3 | 5.63% |
| Growth rate in dividends 3 onward | 3.28% |
2.
Given the information in the table, what is TODAYs price of the stock?
| Todays Dividend | $4.52 |
| Discount Rate | 9.00% |
| Growth rate in dividends 0 to 1 | 3.00% |
| Growth rate in dividends 1to 2 | 6.00% |
| Growth rate in dividends 2 to 3 | 6.00% |
| Growth rate in dividends 3 onward | 3.00% |
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
