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
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- 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 51.50You 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 why
- LIFECORP, will pay a dividend of $5.10 per share next year. The company pledges to increase its dividend by 4.20 percent per year indefinitely. If you expected a return of 11.90 percent on your investment, how much should you pay for the company's stock today?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?Addy Stock currently sells for $30 a share. The stock just paid a dividend of $2.00 a share (i.e., D0 = $2.00). The dividend is expected to grow at a constant rate of 8% a year. What stock price is expected 1 year from now? What is the required rate of return on the company’s stock?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)?
