Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

PAGE: 12 Fat.2. 2022 3. 0 (3 points) Find the price of a stock that has a constant growth rate of 4%, a current dividend

image text in transcribed
PAGE: 12 Fat.2. 2022 3. 0 (3 points) Find the price of a stock that has a constant growth rate of 4%, a current dividend of $7, and a required return of 10%. (1 point) What happens if the growth rate is greater than the required rate of return? 0 ( 2 points) If the P:E ratio is 30 , and the projected eamings for the firm are $5 /share, and the dividend is $3/5hare what is the expected price? (1. point) Why do some stocks have a high PJE ratio relative to other stocks? 0 (1 point) What is the expected capital gains yleld? 9 (I point) What is the expected dividend yield? 6. (4 points) The required rate of return for a stock is I5\%. The company just paid a dividend of 56 per share. The current price is $100. Calculate the growth rate. (9) (3 points) What is the retumyicld of a stock that was purchased one year ago for $30 and is now worth $18. The stock also paid a dividend of 54 for the year. (9) (4 points) A company just pald in mnual dividend of 55 , Assume that the price for the company is S40 and the growth rate 6%. What is the required rate of return

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions