Question
1. The next dividend payment by PT. Nusantara will be $15 per share. The dividends are anticipated to maintain a 6.25% growth rate forever. The
1. The next dividend payment by PT. Nusantara will be $15 per share. The dividends are anticipated to maintain a 6.25% growth rate forever. The stock currently sells at $100 per share. Find the required return. 2. Every beginning of year, Studio Ghibli pay the dividends for their stockholders. Next year (2021) they will give 2 for each share, and in the 2022, they will give $2.5 for each share. The required return for this company is 30%. How much the price of Tabis stock value now (2020)? 3. PT. Red, PT. Blue, and PT. White each will pay a dividend of $10 next year. The growth rate in dividends for all three companies is 2.5%. The required return for each companys stock is 6%, 9%, and 12%, respectively. What is the stock price for each company? What do you conclude about the relationship between required return and stock price? 4. A startup company, PT. WWCD will not pay any dividends on the stock over the next 5 years, the firm use its earnings to fuel their growth. The company will pay $8 per share dividend in 6 years and will increase the dividend by 2.5% per year thereafter. Required return on the stock is 15%. Find the current share price. 5. Netflix just paid a dividend of 2.7 per share. The dividends are expected to grow at 5.5% for the next 5 years and then 7.5% growth rate for the following years. If the required return is 15%, find the price of the stock today 6. Below is the stock quote for PT. Nestle from todays newspaper. What was the closing price for this stock that appeared in yesterdays newspaper? If the company currently have 25 million shares of stock outstanding, what was net income for the most recent four quarters?
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