Dividend rates
. A firm is expected to pay a dividend of $1.50 per share at the end of year 1(Div1), and the dividends are expected to grow at a constant rate of 2 percent forever. If the current price of the stock is $30 per share, calculate the expected return or the cost of equity capital for the firm.
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Casino Inc. expects to pay a dividend of $4 per share at the end of year...
Casino Inc. expects to pay a dividend of $4 per share at the end of year 1 (Div1) and these dividends are expected to grow at a constant rate of 5 percent per year forever. If the required rate of return on the stock is 15 percent, what is the current value of the stock today?
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Dividends
A firm has just now paid a dividend of $2.50 per share (Div0); its dividends are expected to grow at a constant rate of 4 percent per year forever. If the required rate of return on the stock is 14 percent, what is the current value of the stock, after paying the dividend?
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