Given,
D0 = $1 per share
Ke = 14%
growth rate forever = 5%
So, today's stock value P0 = D1/(Ke-g) = 1*1.05/(.14-.05) = $11.67
Question 20 1 pts Diamond Wine Exports paid a $1.00 per share annual dividend last week....
Textile Importers paid a $1.60 per share annual dividend last week. Dividends are expected to increase by 4% annually. What is one share of this stock worth to you today if your required rate of return is 13.5%? Select one a $1752 b. $16.84 $19.23 d. $19.87
Question 2 5 pts A stock paid its annual dividend of $4.75 per share last week. This dividend is expected to grow at 20 percent per year for two years. Thereafter, the dividend growth rate is expected to be constant at 5 percent per year indefinitely. If the appropriate discount rate for the stock is 12 percent, what should the stock's price be today? $95 $92 $97 $103
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A stock paid its annual dividend of $4.75 per share last week. This dividend is expected to grow at 20 percent per year for two years. Thereafter, the dividend growth rate is expected to be constant at 5 percent per year indefinitely. If the appropriate discount rate for the stock is 12 percent, what should the stock's price be today?
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Problem1: The XYZ Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4% per year indefinitely. Assume investorsrequire a return of 10.5 % on the XYZ Co. stock. What will the price be in 3 years? Show yourwork/calculations Problem2: The ABCorp. paid an annual dividend of $1.37 a share last month. Today, the company announced that future dividends will be increasing by 2.8 percent annually. If...