Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1)A stock will pay a dividend of $ 1.26 per share, which is expected to grow at 2.5 % per period. The discount rate is

1)A stock will pay a dividend of $ 1.26 per share, which is expected to grow at 2.5 % per period. The discount rate is 12%. What should be the current price?

2)A stock just paid a dividend of $ 7.58 per share, which is expected to grow at 2.86% per period. The discount rate is 8.31%. What should be the current price?

3)A stock costs $23.34 and will pay a dividend of $9.84 that will grow at 2% per year. What is the dividend yield?

4)Loser Inc. will pay a dividend of $2.67 per share on its common stock at the end of this year. If the expected long-term growth rate for this company is -3.69% and investors require a 8.37% rate of return, what is the price of ABC Inc. stock?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

What is meant by Career Planning and development ?

Answered: 1 week ago

Question

What are Fringe Benefits ? List out some.

Answered: 1 week ago