Alfa international paid $2.00 annual dividend on common stock and promises that the dividend will grow by 4% per year, if the stock’s market price for today is $20, what is required rate of return?
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Alfa international paid $2.00 annual dividend on common stock and promises that the dividend will grow by 4% per year, if the stock’s market price for today is $20, what is required rate of return?
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- Assume that Temp Force is a constant growth company whose last dividend (D0, which was paid yesterday) was 2.00 and whose dividend is expected to grow indefinitely at a 6% rate. (1) What is the firms current estimated intrinsic stock price? (2) What is the stocks expected value 1 year from now? (3) What are the expected dividend yield, the expected capital gains yield, and the expected total return during the first year?CanPro Co. is expecting that its dividend for this coming year will be $1.2 a share and that all future dividends are expected to increase by 3 percent annually. What is the required return of this stock if the current market price of the stock is $17?Hadlock Healthcare expects to pay a $3.00 dividend at the end of the year (D1 = $3.00). The stock’s dividend is expected to grow at a rate of 15 percent a year until three years from now (t = 3). After this time, the stock’s dividend is expected to grow at a constant rate of 4 percent a year. The stock’s required rate of return is 11 percent. What is the price of the stock today? 46.32 54.48 48.33 51.50
- You believe that the Non-Stick Gum Factory will pay a dividend of $5 on its common stock next year. Thereafter, you expect dividends to grow at a rate of 1% a year in perpetuity. If you require a return of 12% on your investment, how much should you be prepared to pay for the stock? What is the Stock Price?Dollar Tree Inc (DLTR) is expected to pay a $1.85 dividend, and it is expected to grow at 9.85% for the next 3 years. After 3 years the dividend is expected to grow at the rate of 5.15% indefinitely. If the required return is 8.15%, what is DLTR's stock value today?General Motors expects to pay dividends of $10 this year and $12 next year, after that the company expects to grow at a 6% rate for the rest of its life. What is the value of the stock if investors require a 10% return to purchase the stock?
- use excel and explain whySimon Fixtures Corp. is expected to pay $2.00 per share in dividends at the end of the year. The growth rate in dividends is expected to be constant at 8% per year. If the stock is selling for $50 per share, what is the required rate of return?Suppose Facebook Inc. currently pays $1 dividend. Analysts project that the dividend for the next three years will be $1, $2, and 5$. After that the annual dividend is predicted to grow at 5% per year. Investors require a 10% rate of return. What is the value of one share of Facebook stock under these assumptions?
- Deployment Specialists just paid an annual dividend of $1. Their dividend is expected to grow at 20% for two years and then at 2% thereafter. If the required return for Deployment Specialists is 8.5%, what is the intrinsic value of Deployment Specialists stock? Round your answer to two decimal places.Denver Shoppes will pay an annual dividend of $1.46 a share next year with future dividends increasing by 4.2 percent annually. What is the market rate of return if the stock is currently selling for $38.90 a share?Woidtke Manufacturing’s stock currently sells for $22 a share. The stockjust paid a dividend of $1.20 a share (i.e., D0 = $1.20), and the dividend isexpected to grow forever at a constant rate of 10% a year. What stock priceis expected 1 year from now? What is the estimated required rate of returnon Woidtke’s stock (assume the market is in equilibrium with the requiredreturn equal to the expected return)?
