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Dividend Yield. BMM Industries pays a dividend of $3 per quarter. The dividend yield on its stock is reported at 6 percent. What price is
Dividend Yield. BMM Industries pays a dividend of $3 per quarter. The dividend yield on its stock is reported at 6 percent. What price is the stock selling at?
- Stock Values. Integrated Potato Chips paid a $4 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 5 percent per year.
What is the expected dividend in each of the next 3 years?
If the discount rate for the stock is 15 percent, at what price will the stock sell?
What is the expected stock price 3 years from now?
If you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments? Compare your answer to (b).
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