What is the current value of IBM preferred. Assume that the stock is paying a dividend of $2.5 a year and stocks of comparable risk return 3.7%?

What price would you expect to pay for a stock with a 16.4% required rate of return, 4% rate of dividend growth, and an annual dividend of $2.5 which will be paid next year?

What is the expected rate of return for a stock that is expected to pay $1 dividend next year and is currently selling for $10. The price of the stock next year is expected to be $11.87 by next year. Write your answer as a decimal (i.e. do not change to a percent).

What is the dividend next year for a stock that currently pays a $2 dividend which is growing at 9%?

IBM has just paid a dividend of $4 per share (this dividend is already paid sometimes called Dividend 0). It is estimated that the company?s dividend will grow at a rate of 35% in year 1 and 20% in year 2. The dividend is then expected to grow at a constant rate of 9% thereafter. The company?s opportunity cost of capital is 12% what is the current value of IBM?s stock?