I need part B. Can you show how to do it in Excel?
You observe a stock price of $18.75. You expect a dividend growth rate of 5% and the most recent dividend was $1.50. | ||||||||
(a) What is the required return? | ||||||||
price | 18.75 | |||||||
growth rate | 0.05 | |||||||
recent dividend | 1.5 | |||||||
Required Return | 0.082667 | 0.132667 | ||||||
(b) What is the capital gains yield? | ||||||||
Q8) You observe a stock price of S 18.75. You expect a dividend growth rate of 5%, and the most recent dividend was $1.50. What is the required return? What is the dividend yield and capital gains yield? Do 1 +g) 0
You observe the latest dividend paid of $4 per share. The growth rate is projected to be a constant 5 % per year. Your required rate of return is 8%. a. What price are you willing to pay for that stock today? b. What is expected stock price in 1 year? c. Find dividend yield d. Find capital gains
you observe the last dividend paid of $4 per share. The growth rate is projected to be a constant 5% per year. Your required rate of return is 8%. a. what price are you willing to pay for that stock today? b. what is expected stock price in 1 year? c. find dividend yield d. find capital gains
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