Question
Note:Please show me your calculation process! 1.A stock is expected to pay a dividend of $2.00 at the end of the year (D1 = 2.0).The
Note:Please show me your calculation process!
1.A stock is expected to pay a dividend of $2.00 at the end of the year (D1 = 2.0).The required rate of return is rs = 9%, and the expected constant growth rate is g = 4.0%.What is the stock's current price?
2.Star Manufacturing is expected to pay a dividend of $3.00 per share at the end of the year (D1 = $3.00).The stock sells for $500 per share, and its required rate of return is 10%.The dividend is expected to grow at some constant rate, g, forever.What is the equilibrium expected growth rate?
3.If D0 = $3.0, g (which is constant) = 2%, and P0 = $200.00, what is the stock's expected dividend yield for the coming year?Hint: You need to find D1 first.
4.Atlas Mines has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3.00 percent annually. The firm just paid an annual dividend of $2.
(1) What will the dividend be five years from now?
(2) What will the dividend be ten years from now?
(3) What will the dividend be twenty years from now?
5.Food Inc. just announced it is increasing its annual dividend to $5.0 next year and establishing a policy whereby the dividend will increase by 3.00 percent annually thereafter. Assuming the required rate of return is 8.00 percent.
(1) What will the stock price per share be ten years from now?
(2) What will the stock price per share be twenty years from now?
(3) What will the stock price per share be thirty years from now?
6.ABC Company announced today that it will begin paying annual dividends next year. The first dividend will be $0.10 a share. The following dividends will be $0.20, $0.30, $0.40, and $0.50 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 2.0 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 8.0 percent?
XYZ Firm recently paid $1.00 as an annual dividend. Future dividends are projected at $1.50, $2.00, $2.50, and $3.00 over the next 4 years, respectively. Beginning 5 years from now, the dividend is expected to increase by 3.0 percent annually. What is one share of this stock worth to you if you require 8 percent rate of return on similar investments?
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