Question 5: Calculate the current share price of the following: Dividends in year 0 = $2 Dividends in year 2 = $2.50 Dividends in year 4 = $2.75 Dividends in year 6 = $3.75 Thereafter dividends grow at 6% annually with a required return of 11%.
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- DM plans to pay the following dividends:End of year 1End of year 2$1.36End of year 3$1.15End of year 4$1.35$2.31Thereafter, DM plans to grow their dividends by 5.0 percent annually. If the required return is 11.4 percent, what is the current value of this stock?A. $36.58B. $28.13C. $8.60D. $29.23E. None of the choices are correct.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. $200.75Do= $5/ share. Future dividend growth rate = 7% / year. Stock price=? When the required return = 16% A) $54.16 B) $61.07 C) $59.44 D) $32.74
- 4b8. Dividend discount model Company X is expected to pay an end-of-year dividend of $5 a share. After the dividend, its stock is expected to sell at $110. If the market capitalization rate is 8%, what is the current stock price?Use the Gordon Growth Model to estimate the cost of the ordinary shares (expressed as a percentage to two decimal places) from the information provided attached.
- 3. A company paid $1.75 most recent dividend (Do) for the common stock. The growth rate of dividend is expected to be 8% indefinitely. What is its price if the market's rate of return is 16%? A. $20.1 B. $21.8 C. $22.7 D. $23.64. The current price of a common stock is $50.20. The next year dividend is expected to be $2.30 assuming a constant growth rate of 5%. What is the required rate of return? A. 10.3% B. 10.1% C. 9.58% D. 8.64%Question 5 : XYZ Inc’s most recent dividend was $20 per share. Dividends are expected to grow at an 9% annual rate into the foreseeable future. If your required rate of return is 15% annually, how much should you pay for a share of XYZ Corp?
- Perferred Stock valuation. Stock that sells for $30.00 a share and pays dividend of $2.75 at the end of a year. What is the required rate of return?An ordinary share currently pays a dividend of R2 for the year. Expected dividends growth is 20% for the next three years and then growth is expected to revert to 7% thereafter for an indefinite amount of time. The appropriate required rate of return is 15%. What is this ordinary share’s value?1. R33.892. R34.563. R36.934. R37.234a