Petkim recently paid $1.3 dividend per share and the dividend is expected to rise at a steady rate of 4% each year. a. Calculate the
Petkim recently paid $1.3 dividend per share and the dividend is expected to rise at a steady rate of 4% each year.
a. Calculate the expected dividends for the next three years.
b. Calculate the price of the stock today given 12% discount rate.
c. Calculate the expected stock price three years from now.
d. Assume that Kerem buys a Petkim stock today and sells it 3 years from now. Calculate the total cash flows that Kerem expects to receive in year 1, year 2, and year 3.
e. Calculate the present values of each cash flows you found in part (d) separately.
Problem - Dividend Discount Model Petkim recently paid $1.3 dividend per share and the dividend is expected to rise at a steady rate of 4% each year. a. Calculate the expected dividends for the next three years. b. Calculate the price of the stock today given 12% discount rate. c. Calculate the expected stock price three years from now. d. Assume that Kerem buys a Petkim stock today and sells it 3 years from now. Calculate the total cash flows that Kerem expects to receive in year 1, year 2, and year 3. e. Calculate the present values of each cash flows you found in part (d) separately. Complete this question by entering your answers in the tabs below. Req A Req B and C Req D Req E Calculate the expected dividends for the next three years. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected Dividend Year 1 Year 2 Year 3 Petkim recently paid $1.3 dividend per share and the dividend is expected to rise at a steady rate of 4% each year. a. Calculate the expected dividends for the next three years. b. Calculate the price of the stock today given 12% discount rate. c. Calculate the expected stock price three years from now. d. Assume that Kerem buys a Petkim stock today and sells it 3 years from now. Calculate the total cash flows that Kerem expects to receive in year 1, year 2, and year 3. e. Calculate the present values of each cash flows you found in part (d) separately. Complete this question by entering your answers in the tabs below. Req A Req B and C Reg D Req E Calculate the price of the stock today and the expected stock price three years from now given 12% discount rate. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Current price c. Future price Petkim recently paid $1.3 dividend per share and the dividend is expected to rise at a steady rate of 4% each year. a. Calculate the expected dividends for the next three years. b. Calculate the price of the stock today given 12% discount rate. c. Calculate the expected stock price three years from now. d. Assume that Kerem buys a Petkim stock today and sells it 3 years from now. Calculate the total cash flows that Kerem expects to receive in year 1, year 2, and year 3. e. Calculate the present values of each cash flows you found in part (d) separately. Complete this question by entering your answers in the tabs below. Req A Req B and C Req D Req E Assume that Kerem buys a Petkim stock today and sells it 3 years from now. Calculate the total cash flows that Kerem expects to receive in year 1, year 2, and year 3. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Year 1 Year 2 Year 3 Dividend Sale of stock Total cash flow $ 0.00 $ 0.00 $ 0.00 Petkim recently paid $1.3 dividend per share and the dividend is expected to rise at a steady rate of 4% each year. a. Calculate the expected dividends for the next three years. b. Calculate the price of the stock today given 12% discount rate. c. Calculate the expected stock price three years from now. d. Assume that Kerem buys a Petkim stock today and sells it 3 years from now. Calculate the total cash flows that Kerem expects to receive in year 1, year 2, and year 3. e. Calculate the present values of each cash flows you found in part (d) separately. Complete this question by entering your answers in the tabs below. Req A Req B and C Req D Req E Calculate the present values of each cash flows you found in part (d) separately. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Year 1 Year 2 Year 3 PV of cash flow
