the dividend to be paid at the end of the year is $0.75, the growth rate is 5% and the stock price is $25. what is the required rate of return according to the constant growth dividend model?
the dividend to be paid at the end of the year is $0.75, the growth rate...
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs=10.5%, and the expected constant growth rate is g=10%. What is the stock's current price?
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 1%. What is the stock's current price?
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 3.5%. What is the stock's current price? Select the correct answer. a. $13.61 b. $10.71 c. $15.06 d. $12.16 e. $16.51
1. The last dividend paid by Corporation was $1.00. Corporation’s growth rate is expected to be 5 percent forever. Corporation’s required rate of return on equity is 12 percent. What is the current price of Corporation’s common stock? 2. Corporation has paid a $1.00 dividend every year on its preferred stock since its inception in 1967. Investors demand a 7 percent required return on the stock. What should Corporation’s stock trade for in the market? 3. The last dividend paid by Corporation...
1) Dividend growth rate is important to many investors. You are considering investing in a firm after looking at the firm's dividends over a six-year period. At the end of the year 2010, the firm paid a dividend of $0.98. At year-end 2016, it paid a dividend of $1.64. What was the average annual growth rate of dividends for this firm? 2) Wallboard Inc, plans to pay a dividend in one year of $0.80, the dividend growth rate is expected...
The Company’s beta is 1.25 and its dividend growth rate is 14.75%, just yesterday, it paid a dividend of $1.75. Today’s share price is $53.00. Furthermore, you believe that the share price moves in accordance with the dividend constant growth model. The economy wide risk free interest rate is 4.5% and the expected risk premium for the market portfolio is 9.5%. You believe that the stock represents a good investment if the expected total return implied by the dividend constant growth model exceeds the...
VALUATION OF A CONSTANT GROWTH STOCK A stock is expected to pay a dividend of $0.75 at the end of the year (i.e., D1 = $0.75), and it should continue to grow at a constant rate of 4% a year. If its required return is 12%, what is the stock's expected price 4 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.
1.Golf World has a constant dividend growth rate of 10% and has just paid a dividend (D0) of $5.00. If the required rate of return is 15%, what will the stock sell for one year from now? A) $90.00 B) $95.50 C) $ 100.00 D) $121.00 2.The dividend yield on AAA’s common stock is 5%. The company just paid a $4 dividend (D0), which will be $4.40 next year. The dividend growth rate (g) is expected to remain constant at...
18. A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 8.2%. What is the stock's current price? e.$27.07 O d.$38.80 O c.$32.61 O b. $29.02 O a$27.39