Amax Inc. has a PE ratio of 25. It is expected to earn $1.50/ share in year 1. If investors expect a return of 15% per year on the stock, what is the premium for growth on the stock?
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- What is the premium for growth on the stock on these financial accounting question?A company currently pays a dividend of $1 per share (D0 = $1). It is estimated that the company's dividend will grow at a rate of 24% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.7, the risk-free rate is 9%, and the market risk premium is 4.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.A company currently pays a dividend of $3 per share (D0 = $3). It is estimated that the company's dividend will grow at a rate of 21% per year for the next 2 years, and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.5, the risk-free rate is 10%, and the market risk premium is 7%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent. Jackson Corporation's bonds have 8 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%. The bonds have a yield to maturity of 10%. What is the current market price of these bonds? Do not round intermediate calculations. Round your answer to the nearest cent.
- Yharnam Co. is expected to pay a dividend of D1 = $1.40 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.2, the Market Risk Premium is 6.25%, and the risk-free rate is 3.90%. What is the company's current stock price? Group of answer choices 24.06 18.59 28.00 22.40 21.88A company currently pays a dividend of $2 per share (D0 = $2). It is estimated that the company’s dividend will grow at a rate of 20% per year forthe next 2 years and then at a constant rate of 7% thereafter. The company’sstock has a beta of 1.2, the risk-free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock’s current price?Suppose you bought XYZ stock 1 year ago for $6.54 per share and sell it at $2.79. You also pay a commission of $0.35 per share on your sale. What is the total return on your investment? The total return is %?
- The preferred stock of Clara Inc. has a par value of K100 and a K1 dividend payout per month. You require an 11% per annum rate of return on this stock. What is the maximum price you would pay for it? Would you buy it at a market price of K96?Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.85, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is Dyer's current stock price? Select the correct answer. a. $16.23 b. $16.70 c. $17.17 d. $15.29Mclver's Meals, Inc. currently pays a OMR2 annual dividend. Investors believe that dividends will grow at 20% next year, 12% annually for the two years after that, and 6% annually thereafter. Assume the required return is 10%. What is the current market price of the stock? Select one: O a. OMR69.30 O b.OMR75.20 O c. OMR66.60 O d. OMR60.80 O e. OMR54.99
- A Share is currently selling for Rs.65. The company is expected to pay a dividend of Rs.2.50 on the share at the end of the year. It is reliably estimated that the share will sell for Rs. 78 at the end of the year. Assuming that the dividend and price forecast are accurate, would you buy the share to hold it for one year, if your required rate of return were 12per cent? Given the current price of Rs. 65 and the expected dividend of Rs. 2.50 what would the price have to be at the end of one year to justify purchase of the share today, if your required rate of return were 15% per cent?Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 2.00, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is Dyer's current stock price? Select the correct answer. a. $13.89 b. $12.83 c. $13.36 d. $11.77 e. $12.30 just give me the logic behind this dont give me the answer directlyWhat rate of return is expected from a stock that sells for $30 per share, pays $1.54 annually in dividends, and is expected to sell for $32.80 per share in one year?
