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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- Need helpWhat 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.
- 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?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.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
- Tresnan Brothers is expected to pay a $1.60 per share dividend at the end of the year (i.e., D1 = $1.60). The dividend is expected to grow at a constant rate of 10% a year. The required rate of return on the stock, rs, is 17%. What is the stock's current value per share? Round your answer to the nearest cent.Analysts expect Costco stock to pay a dividend of $3.70 in 1 year and is expected to sell for $374.41 at that time. If the required return is 5.0%, what is the value of the stock?Trent Brothers is expected to pay a $3.80 per share dividend at the end of the year (i.e., D1 = $3.80). The dividend is expected to grow at a constant rate of 10% a year. The required rate of return on the stock, rs, is 19%. What is the stock's current value per share? Round your answer to the nearest cent.
- A 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?Raspusin Corp is expected to pay a $0.85 per share dividend at the end of the year (that is D1). The dividend is expected to grow at a constant rate of 2% a year. The required rate of return on the stock, rs is 17%. What is the stock’s value per share?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 %?
