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if possible, please answer all of the questions!! (show work please :)) Investors are currently paying $150 for a share of BMO. If the expected
if possible, please answer all of the questions!! (show work please :))
Investors are currently paying $150 for a share of BMO. If the expected dividend next year is $1.33, and we expect a constant dividend growth in perpetuity, what is the growth rate implied by this price? Assume that the required rate of return for BMO is 5%. a) 4.1% b) 2.7% c) 9.5% d) 3.5% Question 5 0.5 / 0.5 points Passmore Gas and Propaine Inc. has just paid a dividend of $5.90 per share. The dividend is expected to grow at an annual rate of 4.3% indefinitely. What is the share price today if the required return is 12.4% ? Provide your answer to 2 decimals. Answer: 75.97 Question 6 0 / 0.5 points Analysts are forecasting that the expected dividend for Sam\&Ella Restaurants Ltd for the coming year will be $3.10 per share. The dividend is expected to grow at 4.9% forever. If the required rate of return is 11.7%, what is the current share price? Provide your answer to 2 decimals. Answer: 47.82(45.59) Question 7 0 / 1 point Aegon NV just paid a dividend of $5.50. The dividends of Aegon are expected to grow by 2.06% next year (year 1 ) and 7.28% the year after that (year 2). In year 3 , the dividend is expected to be $5.50. Subsequently, Aegon's dividends are expected to grow at 3.270% in perpetuity. The proper discount rate (required rate of return) for Aegon is 14.71%. What is the fair price for a share of Aegon's stock? Answer: 74.16(46.03)Step by Step Solution
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