b. Expected fair value = $2.10(1 + 0.012)4 / (0.152 - 0.012)
Expected fair value = $15.73
A stock you are evaluating just paid an annual dividend of $2.10. Dividends have grown at...
A stock you are evaluating just paid an annual dividend of $3.00. Dividends have grown at a constant rate of 1.3 percent over the last 15 years and you expect this to continue. A stock you are evaluating just paid an annual dividend of $3.00. Dividends have grown at a constant rate of 1.3 percent over the last 15 years and you expect this to continue. a. If the required rate of return on the stock is 13.1 percent, what...
A stock you are evaluating just paid an annual dividend of $2.70. Dividends have grown at a constant rate of 2.4 percent over the last 15 years and you expect this to continue. a. If the required rate of return on the stock is 12.8 percent, what is its fair present value? b. If the required rate of return on the stock is 15.8 percent, what should the fair value be four years from today? (For all requirements, do...
A stock you are evaluating just paid an annual dividend of $2.30. Dividends have grown at a constant rate of 1.6 percent over the last 15 years and you expect this to continue. a. If the required rate of return on the stock is 12.4 percent, what is its fair present value?b. If the required rate of return on the stock is 15.4 percent, what should the fair value be four years from today?
A stock you are evaluating just paid an annual dividend of $2.30. Dividends have grown at a constant rate of 1.6 percent over the last 15 years and you expect this to continue. a. If the required rate of return on the stock is 12.4 percent, what is its fair present value?b. If the required rate of return on the stock is 15.4 percent, what should the fair value be four years from today?
step by step instructions 4 A stock you are evaluating just paid an annual dividend of $2.40 Dividends have grown at a constant rate of 18 percent over the last 15 years and you expect this to continue a. If the required rate of return on the stock is 12.5 percent, what is its fair present value? b. If the required rate of return on the stock is 15.5 percent, what should the fair value be four years from today?...
Need some help with this, thank you! A stock you are evaluating just paid an annual dividend of $3.40. Dividends have grown at a constant rate of 2.1 percent over the last 15 years and you expect this to continue. a. If the required rate of return on the stock is 13.5 percent, what is its fair present value? b. If the required rate of return on the stock is 16.5 percent, what should the fair value be four years...
You are evaluating a company’s stock. The stock just paid a dividend of $1.75. Dividends are expected to grow at a constant rate of 5 for long time into the future. The required rate of return (Rs) on the stock is 12 percent. What is the fair present value? Multiple Choice $26.25 $22.50 $35.26 $50.25 None of these choices are correct.
paid an annual dividend of $2.10 yesterday. If future dividends are expected to grow at a rate of 8 percent, and the required rate of return on this stock is 15 percent, the fair price of this stock today is: a. $27.46 b. $33.91 c. $32.40 d. $30.00
You are evaluating the purchase of Cool Toys, Inc. common stock that just paid a dividend of $1.80. You expect the dividend to grow at a rate of 12%, indefinitely. You estimate that a required rate of return of 17.5% will be adequate compensation for this investment. Assuming that your analysis is correct, what is the most that you would be willing to pay for the common stock if you were to purchase it today?
You buy a stock for which you expect to receive an annual dividend of $2.10 for the ten years that you plan on holding it. After 10 years, you expect to sell the stock for $26.15. What is the present value of a share for this company if you want an 8% return? A) $7.72 B) $15.97 C) $26.20 D) $31.41n