Expected rate of return is equal to=(D1/Current price)+Growth rate
=[(1.92*1.04)/24]+0.04
which is equal to
=12.32%
21) Green Company's common stock is currently selling at $24.00 per share. The company recently paid dividends of $...
21) Green Company's common stock is currently selling at $24.00 per share. The company recently paid dividends of $1.92 per share and projects growth at a rate of 4%. At this rate what is the stock's expected rate of return? A indit ant att
Green Company's common stock is currently selling for $53.04 per share. Last year, the company paid dividends of $1.59 per share. The projected growth at a rate of dividends for this stock is 6.53 percent. Which rate of return does the investor expect to receive on this stock if it is purchased today?
Green Company's common stock is currently selling for $98.86 per share. Last year, the company paid dividends of $4.09 per share. The projected growth at a rate of dividends for this stock is 3.02 percent. Which rate of return does the investor expect to receive on this stock if it is purchased today?
Green Company's common stock is currently selling for $80.97 per share. Last year, the company paid dividends of $4.60 per share. The projected growth at a rate of dividends for this stock is 3.11 percent. Which rate of return does the investor expect to receive on this stock if it is purchased today? Round the answer to two decimal places in percentage form.
Valuation of Stock 1) P. Noel Company's common stock has just paid a $2.00 dividend. If investors believe that the expected rate of return on P. Noel is 14% and that dividends will grow at the rate of 5% per year for the foreseeable future, what is the value of a share of P. Noel stock? A) $15.00 B) $22.22 C) $23.33 D) $40.00 2) Green Company's common stock is currently selling at $24.00 per share. The company recently paid...
The common stock of Martin Co. is selling for $34.94 per share. The stock recently paid dividends of $1.25 per share and has a projected constant growth rate of 9.9 percent. If you purchase the stock at the market price, what is your expected rate of return? Your expected rate of return is _____%.
1) A company recently paid out a $4 per share dividend on their stock. Dividends are projected to grow at a constant rate of 5% into the future, and the required return on investment is 8%. After one year, the holding period return to an investor who buys the stock right now will be: A. 5% B. 3% C. 8% D. 13% 2) A company recently paid out a $2 per share dividend on their stock. Dividends are projected to...
ellng at 2400 re cently paid divi dendr of 1.92 Company' Common stock is ceeably 21) Green share The compeny Per share and pojectr growth at a rate of 4/ Per ahat is the stocte's enpexted nute of At this rate return?
The stock of Nogro Corporation is currently selling for $23 per share. Earnings per share in the coming year are expected to be $3.30. The company has a policy of paying out 40% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 21% rate of return per year. This situation is expected to continue indefinitely a. Assuming the current market price of the stock reflects its intrinsic value as computed using...
Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for S77.77. The firm just recently paid a dividend of $4.11. The firm has been increasing dividends regularly. Five years ago, the dividend was just $3.05. After underpricing and flotation costs, the firm expects to net $71.55 per share on a new issue. a. Determine average annual dividend growth rate over the past 5 years. Using that growth...