1)
Price of stock = Dividend / required rate
Price of stock = 1.84 / 0.136
Price of stock = $13.53
2)
Price = D1 / required rate - growth rate
Price = 1.85 / 0.14 - 0.02
Price = 1.85 / 0.12
Price = $15.42
Question 1 1 pts The common stock of Ecolab pays an annual dividend of $1.84 a...
Question 1 1 pts The common stock of Ecolab pays an annual dividend of $1.84 a share. The company has promised to maintain a constant dividend regardless of economic conditions. How much would investors be willing to pay for one share of Ecolab's stock assuming an equity cost of capital of 13.6%? $13.53 $14.56 $14.01 $13.79
The ELL common stock pays an annual dividend of $2.23 a share and is committed to maintaining a constant dividend. How much are you willing to pay for one share of this stock if your required return is 16 percent? Select one: A. $14.04 B. $13.94 C. $14.56 D. $14.67 E. $13.88
The common stock of Water Town Mills pays a constant annual dividend of $2.25 a share. What is one share of this stock worth at a discount rate of 16.2 percent? A) S13.89 B) $14.01 C) $14.56 D) S13.79 E) $13.28
Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $3.50 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a return of 11.80 percent on your equity investments? Multiple Choice $29.66 $8.30 $3.37 $15.30 $41.30
Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $3.10 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a 14.50 percent return on your equity investments?
Jessica's Home Interiors offers a common stock that pays an annual dividend of $1.60 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock today if you want to earn a 9% return on your investments? Select one: a. $18.05 b. $18.16 c. $17.78 d. $17.97
Jessica's Home Interiors offers a common stock that pays an annual dividend of $160 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock today if you want to earn a 9 return on your investments? Select one: a $17.78 b. $18.16 C $17.97 d. $18.05
Business Calculators Inc. will pay an annual dividend of $2.25 per share next year. The company just announced that future dividends will be increasing by 0.75 percent annually. How much are you willing to pay for one share of this stock if you require a rate of return of 12.25 percent? Multiple Choice
Michael's, Inc. just paid this morning an annual dividend of $2.50. Simultaneously, the company announced that future dividends will be increasing by 5.40 percent per year. If you require an annual return of 9.6 percent, how much are you willing to pay to purchase one share of Michael's stock?
Question 12 1 pts Yum! Brands just paid an annual dividend of $2.20 a share and is expected to increase that amount by 2.2 percent per year. What price should you expect to pay per share if the market rate of return for this type of security is 14 percent at the time of your purchase? $18.16 $19.47 $19.89 $20.20 Question 13 1 pts Home Depot currently pays an annual dividend of $2.00 per share and adheres to a dividend...