et sApple stock is currently selling for $45.00 per share. The stock has a constantgrowth rate of 3.00%. The risk free rate is 1.75% and inflation premium is2.0%. The stocks required rate of return is 7.0%. What was the last dividend,Do? (Round to two decimals)$2.08$1.75$1.06$0.85$1.02

Dividend per share refers to the income attributable to the outstanding shareholders which is…

Answered: Apple stock is currently selling for…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A stock just paid a dividend of $1.05. The dividend is expected to grow at 27.09% for three years and then grow at 4.20% thereafter. The required return on the stock is 10.14%. What is the value of the stock?
The expected dividends of Northwestern Mutual are now $10, $37, -$22, $17, and $133 in the following 5 years. What is the present value of the stock? Assume that its discount rate is 4.14%. A. $104.57 B. $147.28 C. $180.85 D. $200.75
Dipstick Auto Repairs is selling shares for $42.00 per share and pays a dividend. The projected growth rate for the company is 2.50%. Assuming the stocks required rate of return is 5.0%. What was the last dividend, Do? (Round to two decimals) $1.06 $1.02 $2.08 O $1.75 O $0.85
9
Roundall dollar answers to 2 decimal places and record all interest rate, coupon rate and growth rate answers as a percentrounded to one decimal place 44. Assume that the current market price of Zigi, Inc. stock is $54.59. If Zigi, Inc. just paid a dividend of $4.57per share (i.e., D0 = 4.57), and if investors expect that the company’s dividends will grow at an annual rate of2.47% forever, then Zigi, Inc.’s required rate of return is ____%. (Record your answer rounded to 1 decimalplace; for example, record 18.29654% as 18.3).45. Phillips, Inc. just paid a dividend of $3.25 per share on its common stock (that is, D0 = 3.25). Investors expectthe dividend to grow at 45% in years 1 and 2, they expect the dividend to grow at 25% in year 3 and theyexpect that all future dividends (that is, dividends in years 4, 5, ..., infinity) to grow at a constant rate of 5%per year. If the cost of capital for Phillips, Inc. stock is 18%, what is the current price of the stock?
Calculate today's stock price, based on the following information: Growth rate of dividends years 1 and 2 = 20% Growth rate of dividends years 3 and 4 = 15% Growth rate of dividends year 5 moving forward = 5% Last dividend paid = $1.00 Required rate of return based on the riskiness of this stock = 12% (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Do not input a c Numeric Response
Company B's dividends were; $2 eight years ago, $2.15 seven years ago, $1.95 six years ago, $2.20 five years ago, $2.30 four years ago, $2.38 three years ago, $2.45 two years ago, $2.15 last year and just paid $2.35. If the required rate of return is 8%, what should the current price of stock be?
Allstate Corp (ALL) recently paid a dividend of $5.51. The required rate of return is 6.97%. Other things held constant, what would the stock’s price be if the growth rate was 2.75%? A. $104.57 B. $134.16 C. $149.88 D. $179.85
AAA's stock has a required rate of return = 11.50%. It is selling for $25/ share. It's dividend will grow at a constant rate of 7.00%. How much is the last dividend, D0? $0.95 $1.05 $1.16 $1.27
Casco common stock sells for $58.49 a share and pays an annual dividend that increases by 1.3 percent annually. The market rate of return on this stock is 12.6 percent. What is the amount of the last dividend paid? $11.60 O $10.99 $9.98 $10.64 $9.52
ABC justpaid a dividend of D0 = $4. Analysts expect the company’s dividend to grow by33% this year, by 28% in Year 2, and at a constant rate of 6% in Year 3 andthereafter. The required return on this stock is 17%. What is the best estimateof the stockâ€™s current market value?Note: Enter your answer rounded off to two decimal points.Do not enter $ or comma in the answer box. For example, if your answer is$12.345 then enter as 12.35 in the answer box.
ABC common stock is expected to pay a dividend of $3 a share at the end of the year; the required rate of return is 10%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $100 a share. Assuming the market is in equilibrium, the stock's price at the end of year 5 will be $_______. $60.83 $140.26 $54.12 $115.43

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Apple stock is currently selling for $45.00 per share. The stock has a constant growth rate of 3.00%. The risk free rate is 1.75% and inflation premium is 2.0%. The stocks required rate of return is 7.0%. What was the last dividend, Do? (Round to two decimals) $2.08 $1.75 $1.06 $0.85