10.Santa Klaus Toys just paid a dividend of $3.20 per share. The required return is 9.4 percent and the perpetual dividend growth rate is 4.1 percent. What price should this stock sell for five years from today?
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- Santa Klaus Toys just paid a dividend of $3.80 per share. The required return is 10.8 percent and the perpetual dividend growth rate is 3.7 percent. What price should this stock sell for five years from today?2. Intel just paid an annual dividend of $2 a share. Management estimates the dividend will increase by 10 percent a year for the next two years. After that, the dividend growth rate is estimated at 5 percent. The required rate of return is 12 percent. What is the value of this stock today?If the last dividend paid by Chemical Brothers Inc. was $1.25 and analysts expect these payments to increase 4% per year, what will the stock price be next year if the required return is 15%? Select one: O a. $12.29 O b. $11.82 O c. $31.25 O d. $12.78 O e. $23.11
- Global Logistics just announced it is increasing its annual dividend to $1.03 next year and will increase that dividend by 2.05 percent annually thereafter. How much will one share of this stock be worth ten years from now if the required rate of return is 13.8 percent?Could I Industries just paid a dividend of $1.10 per share. The dividends are expected to grow at a rate of 20 percent for the next six years and then level off to a growth rate of 4 percent indefinitely. If the required return is 12 percent, what is the value of the stock today?A company's next dividend is USD6.5 which is expected to remain stable in the coming years, till perpetuity. Your required rate of return is 16%. a. How much will you offer to buy this stock at? b. If the dividends will grow at a rate of 4% per year, what will be the dividend that the company will distribute in year 16? C. If the dividends will grow at a rate of 2%, what will be the price of the stock in year 9?
- 4. Mouser Industries' common stock paid $1.32 in dividend last year, and is expected to grow at an annual rate of 7% for the near future. What is the value of the stock if the current rate of return is 11%12. Trend-line Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $5 per share. a. If the market expects a 10% rate of return on Trend-line, at what price must it be selling? b. If Trend-line's earnings per share will be $8, what part of Trend-line's value is due to assets in place, and what part to growth opportunities?Future Motors recently paid $3.30 a share annual dividend. Dividends are expected to increase by 2.75 percent annually. What is one share of this stock worth to you today if your required rate of return is 15 percent? O $24.91 O $25.59 O $26.94 $27.68
- Kramerica Industries paid $3.00 per share in dividends yesterday. Its dividends are expected to grow steadily at 4% per year. If the required return is 8.4%, what is the current price (PO)? $70.10 $69.24 $68.52 Ⓒ$70.91Trend-Line Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $8 per share. a. If the market expects a 10% rate of return on Trend-Line, at what price must it be selling i.e. Current selling price?The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.56 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. a. If investors require a return of 10 percent on the company's stock, what is the current price? b. What will the price be in 11 years?