2. InvestPros, Inc., just paid a dividend of $3.00 per share. You expect the dividend to increase by 20% next year, 10% the following two years, and then 4% thereafter. If you require a rate of return of 10%, what is the most you should be willing to pay for a share of InvestPros stock?
2. InvestPros, Inc., just paid a dividend of $3.00 per share. You expect the dividend to...
Exam Question. XYZ common just paid a dividend of $1 per share. What is the highest price that you are willing to pay, if you require a 13% rate of return, and if you expect that dividends will grow at an annual rate of 20% for the next five years, and at 8% thereafter.
link co just paid a dividend of $1.00 per share. Analysts expect its dividend to grow at 20% per year for the next two years and then 3% per year thereafter. If the required rate of return in the stock is 7%, calculate the current value of the stock. $32.49 $34.77 $35.82 $36.00 $37.20
Link Co just paid a dividend of $1.00 per share. Analysts expect its dividend to grow at 20% per year for the next tow years and then 3% per year thereafter. If the required rate of return in the stock is 8%, calculate the current value of the stock.
TUV Inc., just paid a dividend of $4.5 per share on its stock. The growth rate in dividends is expected to be a constant 6 percent per year indefinitely. Investors require an 20 percent return on the stock for the first three years, then a 12 percent return for the next three years, and then an 9 percent return thereafter. What is the current share price? Answer to two decimals, carry intermediate calcs. to four decimals.
LLOP corporation just paid 4$ dividend per share, you expect the dividend to grow 8% for the next 2 years and expect to sell the stock at $50 at the end of year 2. What is the maximum prie you would pay to buy the stock? the required rate of return is 15%.
Bell Weather Industries just paid a $3.00 per share dividend. The company is planning on increasing its annual dividend by 10% a year for two years and then the annual growth rate will be 5% per year thereafter. What is the current value of one share of stock if the required rate of return is 8%. Show all work.
A company just paid a dividend of $1.70 per share. You expect the dividend to grow 13% over the next year and 9% two years from now. After two years, you have estimated that the dividend will continue to grow indefinitely at the rate of 4% per year. If the required rate of return is 12% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)
Sea Side, Inc., just paid a dividend of $1.96 per share on its stock. The growth rate in dividends is expected to be a constant 3.1 percent per year indefinitely. Investors require a return of 25 percent on the stock for the first three years, then a 20 percent return for the next three years, and then a 18 percent return thereafter. What is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places....
Problem1: The XYZ Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4% per year indefinitely. Assume investorsrequire a return of 10.5 % on the XYZ Co. stock. What will the price be in 3 years? Show yourwork/calculations Problem2: The ABCorp. paid an annual dividend of $1.37 a share last month. Today, the company announced that future dividends will be increasing by 2.8 percent annually. If...
A company just paid a dividend of $1.50 per share. The consensus forecast of financial analysts is a dividend of $1.90 per share next year and $2.20 per share two years from now. Thereafter, you expect the dividend to grow 5% per year indefinitely into the future. If the required rate of return is 14% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)