Question
1-Many investors value stocks without calculating expected future dividends and insteadthey rely upon multiples that reflect how many dollars and cents an investor is willing
1-Many investors value stocks without calculating expected future dividends and insteadthey rely upon "multiples" that reflect how many dollars and cents an investor is willing to pay for every dollar of sales or book value or cash flow generated by the company on a per share basis. The most commonly used valuation multiple to determine the price is the PE ratio and relies on which of the following:
the last four even dividend payments
historical earnings
, estimated future earnings
the last dividend payment multiplied by 12
2-The Garden Shoppe has adopted a policy of increasing its annual dividend at a constant rate of 1.35 percent annuallyThe company just paid its annual dividend of $1.86. What will the dividend be nine years from now?
3-Home Services common stock offers an expected total return of 14.56 percent. The last annual dividend was $2.27 a share Dividends increase at constant 2.1 percent per year What is the dividend yiek?
4-Crystal Glass recently pald \$3,60 as an annual dividend Future dividends are projected at $3.80, 4.10 and $4.25 over the next three yearsrespectively. Beginning four years from now the dividend is expected to Increase by 3.25 percent annually. What one share of this stock worth today 12.55 percent?
5-Reducing which of the following will increase the current value of Jonzon stock according to the Dividend Growth Model ?
6-The common stock of Water Town Mills pays a constant annual dividend of $2.25 share What is one share of this stock worth at a discount rate of percent?
7-Shareholders of publicly owned corporations have numerous rights associated with control and cash flowsIf you own shares in The Kroger Co., which of these rights is never directly granted to you?
8-Three Comers Markets paid an annual dividend of $1.42 last month. Today the company announced that future dividends will be increasing by 1.3 percent annually If you require a return of 14.0 percent, how much are you willing to pay to purchase one share of this stock today?
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