FIN 550-HW module 3

Turbo Technology Computers is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 15% during the next two years, at 13% in the third year, and at a constant rate of 6% thereafter. Turbo's last dividend was $1.15, and the required rate of return on the stock is 12%. Complete the following calculations: a.Calculate the value of the stock today. b. Calculate P1^ and P2^. c. Calculate the dividend yield and capital gains yield for Years 1, 2, and 3.   2. Kassidy's Kabob House has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share. What is the stock's required rate of return? Assume the market is in equilibrium with the required return equal to the expected return. 3. McCaffrey's Inc. has never paid a dividend, and when the firm might begin paying dividends is not known. Its current free cash flow (FCF) is $100,000, and this FCF is expected to grow at a constant 7% rate. The…

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Use Excel for this question: A company announced that it will pay a $2.00 dividend, a $2.50 dividend, and a $3.70 dividend in years 1, 2, and 3, respectively. A year 3, the dividends are expected to grow at 6% every year. What is the price of this stock today, given an 7% rate of return? O $327.23 O $342.34 O $311.46 O $389.76

Question 3. Consider the current price of a stock is $65.88. If dividends are expected to be $1 per share pays annually for the next five years, and the required return is 10%. (1) What should the price of the stock be in five years when you plan to sell? (2) If the dividend and required return remain the same, and the stock price is expected to increase by $1 five years from now, does the current stock price also increase by $1? Why or why not?

Problem #1: Stock prices. Anderson motors, Inc. Has just set the company dividend policy at $0.50 per year. The company plans to be in business forever. What is the price of this stock if an investor wants. A. a 5% return? B. a 8% return? C. a 10% return? D. a 13% return? E. a 20% return?

Intro Roller Inc. has just paid an annual dividend of $0.8. Analysts expect dividends to grow by 8% per year for the next 9 years, and then by 1.5% per year thereafter. The company has a required return of 12%. Part 1 Attempt 1/10 for 10 pts. What is the value of the stock now? 1+ decimals Submit

1.A common stock paid a dividend at the end of last year of $2.30. Dividends have grown at a constant rate of 7 percent per year over the last 20 years, and this constant growth rate is expected to continue into the future. The stock is currently selling at a price of $46 per share. What is the expected rate of return on this stock?

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A firm paid its annual dividend of $2.74 per share on its stock yesterday. The dividend is expected to grow at a rate of 3.88 percent per year into the foreseeable future. The expected rate of return on this stock is 18.74 percent. What is the expected price of the stock three years from today? Group of answer choices $441.68 $21.47 $18.44 $15.32 $19.15

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Problem #1: Stock prices. Anderson motors, Inc. Has just set the company dividend policy at $0.50 per year. The company plans to be in business forever. What is the price of this stock if an investor wants. D. a 13% return? E. a 20% return?

(a)  Stock A just distributed a dividend of $4. It is expected that the company will increase its dividend by 18% in the coming year, 15% in the second year and 10% in the third year. After the third year, the company will maintain the dividend growth rate at 8% forever. How much would Stock A be worth today if its yearly required rate of return is 15%?  (b)  Suppose you are willing to pay $30 today for a share of stock which you expect to sell at the end of one year for $32. If you require an annual rate of return of 12 percent, what must be the amount of the annual dividend which you expect to receive at the end of Year 1? [Hint: think of P0 = D1 / (R-g)]

7. I need help with finance home work question asap please A company just paid a dividend of $4.15 per share. The company is expected to increase its dividend by 19% per year for each of the next 2 years and then maintain a constant dividend growth rate of 5% forever. What is this stock's expected price per share 2 years from now if the required return on this stock is 13.45%?

(Common stock valuation) The common stock of NCP paid $1.29 in dividends last year. Dividends are expected to grow at an annual rate of 6.60 percent for an indefinite number of years. a. If your required rate of return is 9.20 percent, what is the value of the stock for you? b. Should you make the investment?

(Common stock valuation) The common stock of NCP paid $1.35 in dividends last year. Dividends are expected to grow at an annual rate of 9.50 percent for an indefinite number of years. a. If your required rate of return is 11.60 percent, what is the value of the stock for you? b. Should you make the investment? a. If your required rate of return is 11.60 percent, the value of the stock for you is $ (Round to the nearest cent.)

Intro A stock just paid an annual dividend of $7.8. The dividend is expected to grow by 2% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 15 and the payout ratio to be 60%. The required rate of return is 8%. Part 1 What is the intrinsic value of the stock? 0+ decimals