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Suppose Nabisco Corporation just issued a dividend of $1.19 per share yesterday. Subsequent dividends will grow at a constant rate of 06.40% indefinitely. If the
Suppose Nabisco Corporation just issued a dividend of $1.19 per share yesterday. Subsequent dividends will grow at a constant rate of 06.40% indefinitely. If the required rate of return for this stock is 14.80% , what is the value of a share of common stock today? |
Q2) What is the value of a share of preferred stock that promises to pay $4.13 every year, indefinitely, if you have a required rate of return of 09.50%? |
Q3) The current price of Janco stock is $13.95. Dividends are expected to grow at 05.20% indefinitely and the most recent dividend paid yesterday was $3.99. a) What is the required rate of return on Jancos stock? |
b) What is the Dividend Yield on Jancos Stock? |
c) What is the Capital Gains Yield on Jancos Stock? |
Q4) Magnetic Corporation expects dividends to grow at a rate of 16.70% for the next two years. After two years dividends are expected to grow at a constant rate of 03.00% indefinitely. Magnetic's required rate of return is 10.73% and they paid a $2.58 dividend today. Find the value of Magnetic Corporation's common stock per share |
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