Question
2. Given the following information, what is TODAYs stock price? Todays Dividend = $3.32 Expected Growth rate in dividends = 2.22 Discount Rate (Required return)
2.
Given the following information, what is TODAYs stock price?
| Todays Dividend = | $3.32 |
| Expected Growth rate in dividends = | 2.22 |
| Discount Rate (Required return) = | 7.03 |
Calculate your answer to the nearest penny (e.g., 2.51)
3.
Given the following information, what is the stock price in period 1?
| Todays Dividend = | $3.47 |
| Expected Growth rate in dividends = | 4.54 |
| Discount Rate (Required return) = | 9.20 |
Calculate your answer to the nearest penny (e.g., 2.51)
4.
Given the following information, what is the percentage dividend yield between today and period 1?
| Todays Dividend = | $4.79 |
| Expected Growth rate in dividends = | 5.21 |
| Discount Rate (Required return) = | 7.77 |
Calculate your answer to two decimal places (e.g., 2.51)
5.
Given the following information, what is the stock price in period 2?
| Todays Dividend = | $4.38 |
| Expected Growth rate in dividends = | 4.53 |
| Discount Rate (Required return) = | 6.77 |
Calculate your answer to the nearest penny (e.g., 2.51)
6.
Given the following information, what is the percentage capital gain/loss between today and period 1?
Calculate your answer to two decimal places (e.g., 2.51)
If there is a loss indicate this by using a negative number (e.g., -4.29)
| Todays Dividend = | $2.62 |
| Expected Growth rate in dividends = | 4.37 |
| Discount Rate (Required return) = | 7.84 |
8.
Given the information in the table, what is the price of the stock in YEAR 1?
| Todays Dividend | $3.55 |
| Discount Rate | 9.16% |
| Growth rate in dividends 0 to 1 | 8.34% |
| Growth rate in dividends 1 to 2 | 8.99% |
| Growth rate in dividends 2 to 3 | 6.59% |
| Growth rate in dividends 3 onward | 3.41% |
10.
Given the information in the table, what is TODAYs price of the stock?
| Todays Dividend | $4.13 |
| Discount Rate | 7.00% |
| Growth rate in dividends 0 to 1 | 7.00% |
| Growth rate in dividends 1to 2 | 2.00% |
| Growth rate in dividends 2 to 3 | 3.00% |
| Growth rate in dividends 3 onward | 9.00% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Adventure Capitalist The Ultimate Road Trip
Authors: Jim Rogers
1st Edition
0375509127, 978-0375509124
