Question
Please provide me the answers of all this problem. Thank you. 1. A stock is expected to pay a dividend of P0.50 per share at
Please provide me the answers of all this problem. Thank you.
1. A stock is expected to pay a dividend of P0.50 per share at the end of the year and it should continue to grow at a constant rate of 7% a year. If its required rate of return is 12%, what is the stock's expected price 4 years from today?
2. AP company just paid a dividend of P1.50 per share. The dividend is expected to grow 7% a year for the next 3 years and 5% a year thereafter. What is the expected dividend per share for each in the next 5 years?
3. RCBC is expected to pay P0.50 per share dividend at the end of the year. The dividend is expected to grow at a constant rate of 7.5% a year. The required rate of return of the stock is 15%. What is the stock's current market price?
4. SM recently paid a dividend of P1.50. It expects to have a nonconstant growth of 25% for 3 years followed by a constant rate of 5% thereafter. What is the stock'a intrinsic value if the rate of return is 12%?
5. Made two announcements concerning common stocks:
1st: the next annual dividend will be P1.75 per share
2nd: all dividends thereafter will decrease by 1.5% annually,
What is the maximum amount you should pay to purchase a share of this stock today if you require a 14% rate of return?
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