Question
1.If a stock is purchased for $100 per share and held one year, during which time a quarterly dividend of $1.5 is paid, each quarter,
1.If a stock is purchased for $100 per share and held one year, during which time a quarterly dividend of $1.5 is paid, each quarter, and the price climbs to $130 per share. What is the rate of return?
2.What should be the price for a common stock paying $1.35 annually in dividends if the dividend will remain constant (zero growth of dividend), indefinitely, and the expected return is 5.5%?
3.If the dividend yield for year one is expected to be 4% based on the current price of $80, what will year seven dividend (DIV7) be if dividends grow at a constant 2%?
4.What dividend per share would be reported in the financial press for a stock that currently has 4.5% dividend yield and the most recent stock price was $75?
5.What would be the stock price today if you know you will sell the stock in 2 years from today at $55/share and you expect annual dividends $2/share in year 1 and $3/share in year 2, given the discount rate is 10%?
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