Question
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?
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