Question
1.The common stock of ABC Industries is valued at $39.4 a share. The company increases their dividend by 4.3 percent annually and expects their next
1.The common stock of ABC Industries is valued at $39.4 a share. The company increases their dividend by 4.3 percent annually and expects their next dividend to be $0.3. What is the required rate of return on this stock? That is, solve for r.
2.ABC Enterprises' stock is currently selling for $79.1 per share.The dividend is projected to increase at a constant rate of 3.8% per year.The required rate of return on the stock is 12%.What is the stock's expected price 5 years from today (i.e. solve for P5)?
3.If D0 = $4, g = 5.3%, and P0 = $78.1, what is the required rate of return on the stock? That is, solve for r.
4.ABCs last dividend paid was $1, its required return is 14.6%, its growth rate is 4.4%, and its growth rate is expected to be constant in the future.What is Sorenson's expected stock price in 7 years, i.e., what is P7?
5.A stock just paid a dividend of D0 = $0.8.The required rate of return is rs = 13.4%, and the constant growth rate is g = 5.8%.What is the current stock price?
6.ABC is expected to pay a dividend of $5.7 per share at the end of the year.The stock sells for $150 per share, and its required rate of return is 10.7%.The dividend is expected to grow at some constant rate, g, forever.What is the growth rate (i.e. solve for g)?
7.If D1 = $3.26 and P0 = $122.43, what is the dividend yield?
8.ABC Enterprises' stock is expected to pay a dividend of $2.6 per share.The dividend is projected to increase at a constant rate of 3.6% per year.The required rate of return on the stock is 16.9%.What is the stock's expected price 3 years from today (i.e. solve for P3)?
9.ABC Inc., is expected to pay an annual dividend of $4.8 per share next year. The required return is 15.8 percent and the growth rate is 8.6 percent. What is the expected value of this stock five years from now?
10.A stock is expected to pay a dividend of $1.5 at the end of the year.The required rate of return is rs = 9.1%, and the expected constant growth rate is g = 7.5%.What is the stock's current price?
11.ABC just paid a dividend of D0 = $4.3.Analysts expect the company's dividend to grow by 30% this year, by 22% in Year 2, and at a constant rate of 7% in Year 3 and thereafter.The required return on this stock is 14%.What is the best estimate of the stocks current market value?
12.The common stock of Wetmore Industries is valued at $40.8 a share. The company increases their dividend by 3 percent annually and expects their next dividend to be $5.9. What is the required rate of return on this stock? That is, solve for r.
13.ABC's last dividend was $0.3.The dividend growth rate is expected to be constant at 34% for 3 years, after which dividends are expected to grow at a rate of 7% forever.If the firm's required return (rs) is 16%, what is its current stock price (i.e. solve for Po)?
14.ABC Company's last dividend was $2.4.The dividend growth rate is expected to be constant at 27% for 2 years, after which dividends are expected to grow at a rate of 7% forever.The firm's required return (rs) is 12%.What is its current stock price (i.e. solve for Po)?
15.If D1 = $4.4, g (which is constant) = 5.9%, and P0 = $75.7, what is the required rate of return on the stock? That is, solve for r.
16.ABC's stock has a required rate of return of 13.7%, and it sells for $53 per share.The dividend is expected to grow at a constant rate of 6.9% per year.What is the expected year-end dividend, D1?
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