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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Similar questions

What is the current price of a share of stock when last year’s dividend was P3, the growth rate is 5%, and the investor’s required rate of return is 12%? Format: 11
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?
A share of common stock has just paid a dividend of P3.00. If the expected long-run growth rate for this stock is 15 percent, and if investors require a 18 percent rate of return, what is the price of the stock? Format: 111
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
What is the current price of a share of stock when the current dividend is P4.75, the growth rate is 6%, and the investor’s required rate of return is 11%
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

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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