Question
9. XYZ Corp. just paid a dividend of $0.64. Dividends are expected to grow at a constant rate of 1.3% per year for indefinite future.
9. XYZ Corp. just paid a dividend of $0.64. Dividends are expected to grow at a constant rate of 1.3% per year for indefinite future. The required rate of return is 7%. Calculate the following:
- Price of the stock 5 years from today
- Price of the stock today
- Dividend Yield and Capital Gains Yield today
- Dividend Yield and Capital Gains Yield 5 years from today
10. A stock has currently paid a dividend of $2. This stock will pay following dividends over next five years: $2.65; $3:05: $4.10; $4.65; $5.05 If your required rate of return is 10%, how much maximum are you willing to pay for this stock today?
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
On My Own Two Feet A Modern Girls Guide To Personal Finance
Authors: Sharon Kedar
2nd Edition
1440570841, 978-1440570841
