Johnson & Johnson stock is expected to pay a $3.54 annual dividend next year, the current stock price is $138, and the expected growth rate in dividends is 5.2 %. Using the dividend discount growth model, what is the expected return?
6% |
||
8% |
||
10% |
||
12% |
r - 0.052 = 0.0257
r = 7.77%
r = 8% ---> Answer
Johnson & Johnson stock is expected to pay a $3.54 annual dividend next year, the current...
25. dataDyne Corporation's stock is expected to pay an annual dividend of $3.14 next year (yesterday they paid their annual dividend). Analysts say that the appropriate discount rate for their stock is 15%, and they say that their company is expected to grow continually at a rate of 10% for many years. What is their current stock price under the constant dividend growth model?
Non- constant growth A stock is expected to pay a dividend of $8 next year and this will increase by $2 for each of the following 3 years. after that, the company is expected to pay no dividends to its shareholders. if the required rate of return is 11% on this stock, what is the current stock price?
A stock just paid an annual dividend of $2.7. The dividend is expected to grow by 8% per year for the next 3 years. The growth rate of dividends will then fall steadily (linearly) from 8% after 3 years to 5% in year 6. The required rate of return is 12%. 1.What is the stock price if the dividend growth rate will stay 0.05 (5%) forever after 6 years? 2.In 6 years, the P/E ratio is expected to be 20...
Tesla is expected d to pay no dividends over the next 4 years pay a dividend of $5 at the end of year 5, and then grow the dividends by 6% each year afterwards. the required rate of return is 8% what should be the stock price today according to the two stage growth model?
Problem 12 Intro A stock just paid an annual dividend of $1.1. The dividend is expected to grow by 10% per year for the next 4 years. The growth rate of dividends will then fall steadily by 1.25% per year, from 10% in year 4 to 5% in year 8 and stay at that level forever. The required rate of return is 12%. 18 Attempt 6/10 for 10 pts. Part 1 What is the expected dividend in 8 years? 2+...
2) Suppose that a stock is expected to pay a dividend of $2.50 next year, a dividend of $2.75 the following year and a dividend of $3.00 the year after. After this, dividends are expected to grow at a constant rate of 4% per year. If the required return of this stock is 8%, what is the appropriate price?
A stock current pays an annual dividend of $10 per share per year. The dividend is expected to grow 10% annually. Using the dividend growth model and a required rate of return of 14% what is the price of the stock? $100. $275 $22 78.57 $71.43
XYZ common stock is expected to pay a dividend of $1.46 next year, and that dividend grows at a constant rate of 11.4. If the current price of XYZ common stock is $107.76, then what is the expected rate of return for this stock, based on the Discounted Cash Flow model? (Show your answer in DECIMAL FORM to three decimals, e.g., 12.3% would be entered as 0.123).
Suppose Disney Inc. is expected to pay a $5 dividend in one year. If the dividend is expected to grow at 8% per year and the required return is 12%, what is the price? Versace Company is expected to pay a dividend of $5 next period and dividends are expected to grow at 6% per year. The required return is 15%. What is the current price? Babe Clothing Company is expected to pay a dividend of $5 next period and dividends...
4. If a stock is expected to pay a $2 dividend, and has an expected growth rate of 9%, what is the expected rate of return if the stock sells for $50. 5. What price would you pay for a stock that just paid a $1 dividend has a 6% growth rate, if your required rate of return is 15%? 6. What is the expected rate of return on a stock if the risk free rate is 2%, the market...