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Suppose we observe a stock selling at $40 per share. The next dividend will be $1 per share, and you think the dividend will grow at 12 percent per year forever. What is the dividend yield in this case? The capital gains yield?

What is the stock price today if the dividend grow at 2% forever, the required rate of return r=10%, dividend today is $2.00.   What is the stock price at year 3?

You are considering buying a stock that will pay a dividend of $2.5 next year. The dividend is expected to grow at 6.6% per year forever. The interest rate is 10.6%. What is the price of this stock today (in $ dollars)? $ O 62.50 78.38 O 23.58 48

What would you pay today, in dollars, for a stock that is expected to make a $2 dividend in one year if the expected dividend growth rate is 5% and you require a 12% return on your investment? 28.57 29.33 31.43 43.14 54.30

Suppose Lilly V, Inc. has just paid a dividend. The next dividend, to be paid in a year, is forecasted to be $4. If the growth rate of dividends is 7% and the discount rate is 11%, at what price will the stock sell?        a.Less than $100        b.More than $100        c.$100        d.$111

A corpus expected to pay a dividend of $1.25 per share at the end of the year (D1=$1.25). the stock sells for 27.50 per share and it's required return is 9.75 the dividend is expected to grow at some constant rate forever. what is the equilibrium expected growth rate?

A firm has just paid a $6.00 annual dividend. The dividend is projected to grow at 6.20% per year indefinitely. If the stock sells today for $120.00, what is the required rate of return on the stock? a . 10.19% b. 11.51% c. 6.20% d. 15.77% e. 11.20%

A stock has just paid a $0.50 dividend from earnings per share of $1.50. The stock’s beta is 0.8, the risk-free rate is 1.25% and the expected return on the market is 8%. If the dividend is expected to grow at a constant rate, what is the price of the stock today? What do you expect the price to be in 1 year?