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A share of stock pays a constantly growing (end-of-the-year) dividend. If the stocksells for $56.70/share today, the dividend to be paid in exactly one year

A share of stock pays a constantly growing (end-of-the-year) dividend. 

If the stock sells for $56.70/share today, the dividend to be paid in exactly one year (at t=1) is $2.06, and the total return required by investors (in the stock) is 13.64%, at what price should each share sell in exactly 4 years (at t=4)?


 

You are investing in a share of stock. The share's most recent dividend was $9.13. The dividend is expected to grow forever at a rate of 2.53% per year. You require a 8.59% rate of return on the stock investment. What is a fair price (or, value) for this share of stock?


You have the following data regarding a share ofstock in a particular firm:

  • The dividend at the end of the current year is expected to be $4.38/share
  • The dividend is expected to grow at a constant rate forever
  • The dividend growth rate is -6.04%
  • Investors in the stock expect a 20.32% total return from investing in the stock

 What will be the capital gains yield for the second year (t=1 to t=2)?


 A share of stock has a dividend that is expected to grow at a constant perpetual rate. 

During the next year (t=0 to t=1), the dividend yield is expected to be 9.55%. 

Dividends are paid at year's end. 

If the dividend paid at the end of the year (at t=1) is expected to be $4.64, what is a fair price for the stock today?


A share of preferred stock pays a $2.85 quarterly dividend. If investors require a 8.96% rate of return, what is a fair price for each share?


 

A share of preferred stock pays an annual dividend of $1.81. If investors require a 8.97% rate of return, what is a fair price for each share?

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