Question
A company does not plan to pay dividends for the next three years. After that, they will make a fixed dividend payment of $5 per
A company does not plan to pay dividends for the next three years. After that, they will make a fixed dividend payment of $5 per year for 5 years. After that, they will increase the dividend by 1% per year indefinitely. The required return on the stock is 14%.
What is the value of the stock today? [ Select ] ["$25.20", "$38.85", "$17.17", "$37.34"]
What is the capital gains yield this year? [ Select ] ["1%", "0%", "14%", "19.8%"]
What is the dividend yield this year? [ Select ] ["0%", "13%", "1%", "14%"]
What is the value of the stock in 8 years? [ Select ] ["$37.34", "$38.46", "$38.85", "$71.90"]
What is the capital gains yield in 10 years? [ Select ] ["1%", "14%", "13%", "0%"]
What is the dividend yield in 13 years? [ Select ] ["1%", "14%", "0%", "13%"]
What is the value of the stock in 3 years? [ Select ] ["$25.20", "$26.49", "$37.34", "$38.85"]
What is the dividend yield in 3 years? [ Select ] ["13.39%", "18.88%", "14.00%", "13.00%"]
What is the capital gains yield in 3 years? [ Select ] ["0.61%", "-0.61%", "0.00%", "1%"]
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