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Suppose GDL just paid a dividend of $2 and the required return on the stock is 10%. What growth rate must investors expect if the
Suppose GDL just paid a dividend of $2 and the required return on the stock is 10%. What growth rate must investors expect if the stock currently sells for $53 ? Answer to 4 decimal places, for example 0.1234 . 0.06 margin of error +/0.2% GDL just paid a dividend of $4 per share. Investors expect the company's dividends to grow at a constant rate of 5% per year, and they require a 15% return to invest in the stock. What is the expected price of GDL 1 year from now? 44.1 margin of error +/0.2% FSL is expected to pay a dividend of $3 one year from now. Dividends are expected to grow at 4% per year, and the required return on the stock is 11%. What is the expected price of the stock 2 years from now? Answer to 2 decimal places, for example 42.12. 46.35 margin of error +/0.25% A stock sells today for $55, and just paid a dividend of $3. If the growth rate is 4%, what is the required return on the stock? Answer to 4 decimal places, for example 0.1234 . 0.0967 margin of error +/0.01% Suppose the goddess tells you the following information about a stock: She also tells you that the stock will sell for $45 at three years from now. If you require a 10% return to invest in this stock, what is the most you would be willing to pay for it today? answer to 2 decimal places, for example 49.12 . 40.95 margin of error +10.1% You expect GDL to pay a dividend of $2 in one year, $3 in two years and $5 in 3 years. After that, you think dividends will grow at a constant rate of 5%. You require a return of 12% to invest in GDL. How much would you pay for a share of the company today? Answer to 2 decimal places, for example 39.12 . 61.12 margin of error +/0.1% You buy GBT for $50. One year later, you collect a dividend of $3 and sell the share for $63. What is your percent capital gain on this investment? Answer to 4 decimals, for example 0.4321 . 0.26 margin of error +/0.01% JBT company just paid a dividend of $3. Dividends will grow at a constant rate of 3% forever, and the required return for the company is 14%. Suppose you buy the stock at these conditions today, but one year later investors suddenly expect the growth rate in the stock to be 6%. What is your rate of return on this investment if you sell the shares one year later? Answer to 4 decimal places, for example 0.1234. 0.5675 margin of error +/0.1%
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