Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

which of the fallowing will increase the price of a stock? -decrease in the required rate of return -decrease in the dividend growth rate -delay

which of the fallowing will increase the price of a stock?

-decrease in the required rate of return

-decrease in the dividend growth rate

-delay in the payment of dividends

-decrease in earnings growth

2) if a corp just paid dividends of $4.5 and is expected to maintain annual dividends growth rate of 3% per year. if the required rate of return is 10%, what is the price for the stock?

-45

-46.35

-64.29

-66.21

3) over the next 2 years, a corp will pay dividends of $2 and $2.75 in years 1 and 2, respectively. thereafter dividends will grow at a rate of 2% per year. what is the current value of the stock assuming a required rate of return is 15%?

- 19.81

-20.13

-20.42

-21.38

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Financial Management

Authors: Alan C Shapiro, Paul Hanouna

11th Edition

1119559901, 9781119559900

More Books

Students also viewed these Finance questions

Question

What would you do about the verbal homophobic insults?

Answered: 1 week ago