Question
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started