You may purchase a stock for $24.3. It will pay a dividend of $3.93. If you sell it for $33.2 just after collecting the dividend, what is your total rate of return?
You may purchase a stock for $24.3. It will pay a dividend of $3.93. If you...
You may purchase a stock for $20.73. It will pay a guaranteed dividend of $1.69. If you sell it for $30.13 after collecting the dividend, then what is your (dollar) capital gain (or loss)?
CDB stock is currently priced at $64. The company will pay a dividend of $3.93 next year and investors require a return of 9.9 percent on similar stocks. What is the dividend growth rate on this stock?
you are evaluating a stock for purchase. you estimate that the firm will pay the following dividends in the coming years: Year 1: $2 Year 2: $2.50 Year 3: $3 After the third year, the dividend is expected to grow at a long-term rate of 8%. Your required rate of return is 10%. A. What is the intrinsic value of this stock? B. If you purchase the stock at $120 and your estimates (of future dividends and prices) are correct,...
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?
could you break this down step by step ? Kidd Inc. stock will pay a dividend in one year of $1 and a dividend in two years of $1.50. You plan to sell the stock in two years (just after you receive the dividend) for $27.65. If the market's required return on Kidd Inc. stock is 10%, what is the price today?
John is looking to value a particular stock that is expected to pay the dividend of $1.45 at the end of each year for at least the next few years. John expects to to be able to sell the stock at the end of year two, just after he receives the dividend in that year, for $55 per share. Given this information, what is the estimate of the stock's price today if the required rate of return is 11.00%.
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%?
You are considering the purchase of a new stock. The stock is forecasted to pay a dividend next year (D1) of $3.98. In addition, you forecast that the firm will have a stable growth rate of 4.5% for the foreseeable future. The current risk-free rate of return is 4.4%. The expected return on the market is 7.8% and the standard deviation for the market is 18%. The stock has a correlation to the market of 0.29. Finally, the stock has...
You are considering the purchase of a new stock. The stock is forecasted to pay a dividend next year (D1) of $1.88. In addition, you forecast that the firm will have a stable growth rate of 4.9% for the foreseeable future. The current risk-free rate of return is 3%. The expected return on the market is 7.9% and the standard deviation for the market is 16%. The stock has a correlation to the market of 0.27. Finally, the stock has...
7. In one year, a firm will pay a common stock dividend of $3.35. The dividends have been growing at 6% per year. Based on analysts’ forecasts, you predict that you will be able to sell your stock for $48 per share after one year. If you require a rate of return of 14 percent on your stock, how much would you be willing to pay now for a share of the stock? a) $51.37 c)$42.11 e) $58.54 b) $45.04...