maximum price willing to pay for stock
Current price=D1/(Required return-Growth rate)
=(2.66*1.088)/(0.129-0.088)
which is equal to
=$70.59(Approx).
maximum price willing to pay for stock Question 3 3 pts A company's stock recently paid...
A company's stock recently paid a dividend of $4.02 and expects dividends to grow annually at a rate of 6.2%. Based on the CAPM, the required return for this stock is estimated to be 13.0%. Based on this, the maximum that you would be willing to pay for the stock is $__.__. Round your answer to 2 decimal places.
3 Canvas A stock paid a dividend of $280. The dividends will grow at a constant rate of 3.0%. If the investors require a return rate of 8.8%, what is the current price of the stock? $5.121.58 $9.613.33 $4,97241 $3.277.27 $4,823 24 Question 30 1 pts A company announces to pay a stock dividend of 512 next year. The dividends will grow at a constant rate of 5.0% thereafter. The required rate of return is 6.0%. Find the current price...
estimated return on stock
CommA stock recently paid a dividend of $1.79 and is currently selling for $18.92. If you anticipate a 7.8% growth rate for dividends, then the estimated dividend (or current) return on the stock is ___%. Round your answer to two decimal places.
Clarion Corp. has been selling electrical supplies for the past 20 years. The company's product line has changed very little in the past five years, and the company's management does not expect to add any new items for the foreseeable future. Last year, the company paid a dividend of 4.45 to its common stockholders. The company is not expected to increase its dividends for the next several years. If your required rate of return for such firms is 10.4 percent,...
Mitts Cosmetics Co.'s stock price is $55.94, and it recently paid a $1.00 dividend. This dividend is expected to grow by 29% for the next 3 years, then grow forever at a constant rate, g; and rs = 16%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places.
Carnes Cosmetics Co.'s stock price is $40, and it recently paid a $1.50 dividend. This dividend is expected to grow by 19% for the next 3 years, then grow forever at a constant rate, g; and rs = 15%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places.
Carnes Cosmetics Co.'s stock price is $54.66, and it recently paid a $1.25 dividend. This dividend is expected to grow by 22% for the next 3 years, then grow forever at a constant rate, g; and rs = 10%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.
Carnes Cosmetics Co.'s stock price is $43, and it recently paid a $1.25 dividend. This dividend is expected to grow by 22% for the next 3 years, then grow forever at a constant rate, g; and rs = 14%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places. %
Carnes Cosmetics Co.'s stock price is $54, and it recently paid a $2.50 dividend. This dividend is expected to grow by 25% for the next 3 years, then grow forever at a constant rate, g; and rs = 15%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places
Carnes Cosmetics Co.'s stock price is $74.81, and it recently paid a $1.75 dividend. This dividend is expected to grow by 27% for the next 3 years, then grow forever at a constant rate, g; and rs = 13%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.