A stock just paid a dividend of $2.87. The dividend is expected to grow at 21.52% for two years and then grow at 3.54% thereafter. The required return on the stock is 12.49%. What is the value of the stock?
A stock has an expected return of 15.00%. The risk-free rate is 1.49% and the market risk premium is 6.89%. What is the β of the stock?
The value of the stock is computed as follows:
= Dividend at end of year 1 / ( 1 + required rate of return )1 + Dividend at end of year 2 / ( 1 + required rate of return )2 + ( 1 / required rate of return )2 [ ( Dividend at end of year 3 ) / ( Required rate of return - growth rate ) ]
= ($ 2.87 x 1.2152) / 1.1249 + ( $ 2.87 x 1.2152 2 ) / 1.12492 + 1 / 1.12492 [ ( $ 2.87 x 1.21522 x 1.0354 ) / ( 0.1249 - 0.0354 ) ]
= $ 3.4876 / 1.1249 + $ 4.2382 / 1.12492 + 1 / 1.12492 x $ 49.03
= $ 45.20 Approximately
Beta of the stock is computed as follows:
Expected return = Risk free rate + Beta x Risk premium
0.15 = 0.0149 + Beta x 0.0689
= 1.96 Approximately
A stock just paid a dividend of $2.87. The dividend is expected to grow at 21.52%...
1. A stock just paid a dividend of $1.58. The dividend is expected to grow at 20.65% for five years and then grow at 4.73% thereafter. The required return on the stock is 11.20%. What is the value of the stock? Round to 2 decimal places. 2. A stock just paid a dividend of $1.58. The dividend is expected to grow at 25.17% for two years and then grow at 4.56% thereafter. The required return on the stock is 11.83%....
A stock just paid a dividend of $1.15. The dividend is expected to grow at 27.42% for five years and then grow at 4.85% thereafter. The required return on the stock is 14.60%. What is the value of the stock? Answer format: Currency: Round to: 2 decimal places. The risk-free rate is 3.58% and the market risk premium is 7.47%. A stock with a β of 0.82 just paid a dividend of $2.61. The dividend is expected to grow at...
Really need help with this, thanks. Round to 2 decimal "A stock just paid a dividend of $2.56. The dividend is expected to grow at 27.03% for two years and then grow at 3.01% thereafter. The required return on the stock is 13.16%. What is the value of the stock? The risk-free rate is 1.49% and the market risk premium is 6.41%. A stock with a β of 1.24 will have an expected return of ____%."
#2 A stock just paid a dividend of $3.00. The dividend is expected to grow at 24.07% for five years and then grow at 4.10% thereafter. The required return on the stock is 11.21%. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted #3 A stock just paid a dividend of $1.46. The dividend is expected to grow at 24.14% for two years and then grow at 3.55% thereafter. The required...
1 A stock just paid a dividend of $1.13. The dividend is expected to grow at 23.73% for three years and then grow at 3.39% thereafter. The required return on the stock is 14.90%. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted #2 A stock just paid a dividend of $3.00. The dividend is expected to grow at 24.07% for five years and then grow at 4.10% thereafter. The required...
A stock just paid a dividend of $2.14. The dividend is expected to grow at 20.29% for three years and then grow at 4.33% thereafter. The required return on the stock is 11.91%. What is the value of the stock? The risk-free rate is 1.05% and the market risk premium is 6.41%. A stock with a β of 0.93 just paid a dividend of $2.52. The dividend is expected to grow at 21.12% for three years and then grow at...
#3 A stock just paid a dividend of $1.46. The dividend is expected to grow at 24.14% for two years and then grow at 3.55% thereafter. The required return on the stock is 11.92%. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted #4 The risk-free rate is 1.79% and the market risk premium is 4.64%. A stock with a β of 1.32 will have an expected return of ____%. Submit...
A stock just paid a dividend of $1.06. The dividend is expected to grow at 26.40% for three years and then grow at 3.63% thereafter. The required return on the stock is 11.09%. What is the value of the stock? A stock just paid a dividend of $1.13. The dividend is expected to grow at 21.57% for five years and then grow at 3.01% thereafter. The required return on the stock is 13.42%. What is the value of the stock?...
1.) A stock just paid a dividend of $1.37. The dividend is expected to grow at 29.31% for three years and then grow at 3.42% thereafter. The required return on the stock is 11.32%. What is the value of the stock? 2.) A stock just paid a dividend of $1.98. The dividend is expected to grow at 25.37% for five years and then grow at 4.00% thereafter. The required return on the stock is 10.43%. What is the value of...
A stock just paid a dividend of $1.17. The dividend is expected to grow at 21.41% for three years and then grow at 4.10% thereafter. The required return on the stock is 14.60%. What is the value of the stock? A stock just paid a dividend of $1.81. The dividend is expected to grow at 24.24% for five years and then grow at 3.81% thereafter. The required return on the stock is 12.06%. What is the value of the stock?