Dubai Metro's outstanding common stock is currently selling in the market for $33. Dividends of $2.30 per share were paid last year, return on equity is 20%, and its retention rate is 25%. What is the value of the stock to you, given a 15% required rate of return? a. $ 24.15 b. $ 20.15 c. $ 24.30 d. $ 35.30

Dubai Metro's outstanding common stock is currently selling in the market for $33. Dividends of $2.30 per share were paid last year, return on equity is 20%, and its retention rate is 25%. What is the value of the stock to you, given a 15% required rate of return? a. $ 24.15 b. $ 20.15 c. $ 24.30 d. $ 35.30

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Answer in excel format and explain formulas used.
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.
Suppose Barclay Corp is expected to pay a dividend of $2.50 at the end of the year. f the company and its dividends are growing at a relatively constant rate of 3.5% and Investors required return on the stock is 10.2%, what is the value of the stock? O$37.31 O $24.47 O$25.37 O $24.51 O$38.62 Page 13 of 30 Previous Page Next Page 0gf30.guestions.saved.