Question
A) XYZ stock is currently selling for $76.16 per share. The company just paid its first annual dividend of $1.85 a share. The firm plans
A) XYZ stock is currently selling for $76.16 per share. The company just paid its first annual dividend of $1.85 a share. The firm plans to increase the dividend by 8 percent per year indefinitely. What is the expected return on XYZ stock?
B) Suppose a company just paid dividend of $9.26. The dividend is expected to grow at 7.62% each year. If the stock is currently selling for $347.77, what is the dividend yield?
C) ABC,. Inc just paid a dividend of $14.74. The dividends are expected to grow by 15% in Years 1-3. After that, the dividends are expected to grow by 4% each year. If the required rate of return is 22%, what is today's price of the stock?
D) ABC,. Inc just paid a dividend of $23.47. The dividends are expected to grow by 15% in Years 1-4. After that, the dividends are expected to grow by 8% each year. If the required rate of return is 18%, what is today's price of the stock?
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