Stocks X has a price of $60, and the expected return for the stock is 15%,...
Stocks X has a price of $60, and the expected return for the stock is 15%, with a constant growth rate in its dividend of 14%:
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Stock X’s next year's expected dividend is $0.55 |
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Stock X’s next year's expected dividend is $0.60 |
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Stock X’s next year's expected dividend is $0.65 |
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Stock X’s next year's expected dividend is $0.70 |
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Stock X’s next year's expected dividend |
Homework Answers
Stock Price = Expected Dividend next year/(Expected Return - growth rate)
60 = Expected Dividend next year/(15%-14%)
Hence, expected Dividend next year = $0.60
Hence, the answer is
Stock X’s next year's expected dividend is $0.60
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