The market price of a share of preferred stock is $23.71 and the dividend is $2.40. What discount rate did the market use to value the stock?
Suppose the risk-free rate is 1.43% and an analyst assumes a market risk premium of 7.51%. Firm A just paid a dividend of $1.49 per share. The analyst estimates the β of Firm A to be 1.22 and estimates the dividend growth rate to be 4.61% forever. Firm A has 286.00 million shares outstanding. Firm B just paid a dividend of $1.55 per share. The analyst estimates the β of Firm B to be 0.85 and believes that dividends will grow at 2.70% forever. Firm B has 200.00 million shares outstanding. What is the value of Firm A?
A firm will pay a dividend of $2.67 next year. The dividend is expected to grow at a constant rate of 2.32% forever and the required rate of return is 10.49%. What is the value of the stock?
A firm just paid a dividend of $3.75. The dividend is expected to grow at a constant rate of 2.08% forever and the required rate of return is 13.72%. What is the value of the stock?
Discount rate = (Preferred dividend / price) * 100
Discount rate = (2.4 / 23.71) * 100
Discount rate = 10.12%
The market price of a share of preferred stock is $23.71 and the dividend is $2.40....
The risk-free rate is 2.77% and the market risk premium is 7.64%. A stock with a β of 1.28 just paid a dividend of $2.96. The dividend is expected to grow at 20.83% for five years and then grow at 4.65% forever. What is the value of the stock? Suppose the risk-free rate is 2.40% and an analyst assumes a market risk premium of 6.68%. Firm A just paid a dividend of $1.12 per share. The analyst estimates the β...
The risk-free rate is 3.96% and the market risk premium is 9.00%. A stock with a β of 1.19 just paid a dividend of $2.84. The dividend is expected to grow at 20.37% for three years and then grow at 4.84% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted #3 The risk-free rate is 3.70% and the market risk premium is 7.42%. A stock with a β of 1.32...
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Suppose the risk-free rate is 3.55% and an analyst assumes a market risk premium of 6.21%. Firm A just paid a dividend of $1.19 per share. The analyst estimates the β of Firm A to be 1.47 and estimates the dividend growth rate to be 4.03% forever. Firm A has 268.00 million shares outstanding. Firm B just paid a dividend of $1.59 per share. The analyst estimates the β of Firm B to be 0.71 and believes that dividends will...
Suppose the risk-free rate is 2.40% and an analyst assumes a market risk premium of 6.68%. Firm A just paid a dividend of $1.12 per share. The analyst estimates the β of Firm A to be 1.35 and estimates the dividend growth rate to be 4.91% forever. Firm A has 264.00 million shares outstanding. Firm B just paid a dividend of $1.53 per share. The analyst estimates the β of Firm B to be 0.71 and believes that dividends will...
Suppose the risk-free rate is 2.45% and an analyst assumes a market risk premium of 5.30%. Firm A just paid a dividend of $1.31 per share. The analyst estimates the β of Firm A to be 1.45 and estimates the dividend growth rate to be 4.89% forever. Firm A has 260.00 million shares outstanding. Firm B just paid a dividend of $1.59 per share. The analyst estimates the β of Firm B to be 0.83 and believes that dividends will...
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Suppose the risk-free rate is 3.61% and an analyst assumes a market risk premium of 5.35%. Firm A just paid a dividend of $1.40 per share. The analyst estimates the β of Firm A to be 1.48 and estimates the dividend growth rate to be 4.44% forever. Firm A has 263.00 million shares outstanding. Firm B just paid a dividend of $1.66 per share. The analyst estimates the β of Firm B to be 0.76 and believes that dividends will...
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