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
- North Side Corp’s dividends for year 1, year 2, year 3, and expected share price for year 3 are: D1=$1.95, D2=$2.10, D3=$2.18, and P3=$95 respectively. What is the company’s current share price given the required return of 8 percent?16) IGM Realty had stock prices of $33, $33, $38, $36, and $28 at the end of the last five quarters. If IGM pays a dividend of $1 at the end of each quarter, what is the annual realized return on IGM? A) -5.62% B) -4.49% C) -4.72% D) -4.94%1. If the dividends to be paid in one year from now on a common stock issue are $3.8 per share expected growth rate in dividends is 4.03%, what is the cost of common stock? If the answer is 10.52%, enter 10.52
- 8. 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.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. R37.23Assume that you are given the following dividends for your company's common stock for Years 1-5. Also assume that after Year 5, dividends will then grow at a constant growth rate of 4.0 percent. Now assume that the investors require a rate of return of 17.0 percent. Given this information. determine the current price for a share of your company's stock. Year 1 2 3 4 5 O $29.75 O $30.58 $25.46 O $27.44 O $23.72 Dividend $2.40 $3.20 $3.90 $4.50 $5.00Provide answer this accounting question