Answer:
Problem 9 - 11
What is the stock's expected price 3 years from today?
Current Price = D1 / (ke - g) = 1/(0.14-0.04) = $10
Price after 3 years = 10(1 + 0.04)^3 = $11.25
Problem 9-11 Valuation of a constant growth stock A stock is expected to pay a dividend...
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.
VALUATION OF A CONSTANT GROWTH STOCK A stock is expected to pay a dividend of $2.50 at the end of the year (i.e., D1 = $2.50), and it should continue to grow at a constant rate of 10% a year. If its required return is 14%, what is the stock's expected price 3 years from today? Round your answer to two decimal places. Do not round your intermediate calculations. $
VALUATION OF A CONSTANT GROWTH STOCK A stock is expected to pay a dividend of $3.00 at the end of the year (i.e., D1 = $3.00), and it should continue to grow at a constant rate of 7% a year. If its required return is 13%, what is the stock's expected price 3 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.
VALUATION OF A CONSTANT GROWTH STOCK A stock is expected to pay a dividend of $3.00 at the end of the year (i.e., Di = $3.00), and it should continue to grow at a constant rate of 6% a year. If its required return is 15%, what is the stock's expected price 2 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.
CONSTANT GROWTH VALUATION Tresnan Brothers is expected to pay a $3.9 per share dividend at the end of the year (i.e., D1 = $3.9). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, rs, is 16%. What is the stock's current value per share? Round your answer to two decimal places.
CONSTANT GROWTH VALUATION Tresnan Brothers is expected to pay a $2 per share dividend at the end of the year (i.e., D1 = $2). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 18%. What is the stock's current value per share? Round your answer to two decimal places.
Constant growth valuation Tresnan Brothers is expected to pay a $2 per share dividend at the end of the year (i.e., D1 = $2). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 17%. What is the stock's current value per share? Round your answer to two decimal places. $
Answer all questions ! 9-5: Constant Growth Stocks Valuation of a constant growth stock A stock is expected to pay a dividend of $1.75 the end of the vear that is. D.-$1.75 and it should continue t grow at a constant rate of 7% a year. If ts re are returns 13%, what is the stock's expected pnce 4 years from today 7 Round your answer to two decimal places.
Check My Working 9-5: Constant Growth Stocks Valuation of a constant growth stock A stock is expected to pay a dividend of $1.75 the end of the year (that is, D; - $1.75), and it should continue to grow at a constant rate of 9% a year. It is required returns what he 's expected price 5 years from today? Round your answer to two decimal places. $ 67.03 Hide Feedback Incorrect
A stock is expected to pay a dividend of $1.00 at the end of the year (i.e., D1 = $1.00), and it should continue to grow at a constant rate of 8% a year. If its required return is 12%, what is the stock's expected price 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.