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am. 133.
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- Shares in Fluke Plc currently sell for Rs 4200 and will be worth Rs 4,975 in 7.5 years. Calculate the rate of return.You purchase a stock for $1000 and expect to sell it for $900 after five years but also expect to collect dividents of $130 a year. Calculate the return on this investment.Compute the price of a share of stock that pays a 2 per year dividend and that you expect to be able to sell in one year for 25, assuming you require a 10% return.
- Using DDM (dividend discount model) compute the price of the stock that pays investor 110 euro of dividends forever (starting from the next year), if the required rate of return is 10%.AirMas Airlines will pay a RM4 dividend next year on its common stock, which is currently selling at RM100 per share. What is the market required rate of return on this investment if the dividend is expected to grow at 5 percent forever? Select one: A. 4 percent B. 7 percent C. 9 percent D. 5 percentMalko Enterprises’ stock currently sell for $150. They pay an annual dividend of $10, and you can sell the stock in 1 year for $200. What is their dividend yield?
- Maxwell Inc. announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.93 a share. The dividends will be $1.03 and $1.60 a share annually for the next two years, respectively. After that, dividends are projected to increase by 4.0 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 12 percent? $17.33 $20.51 $22.08 $24.00Assuming a share of Pole Cat Farm's common stock sells for $19, its next dividend is expected to be $0.75 per share, and dividends will grow at 9% per year for the foreseeable future, what is the required return on Pole Cat's common?A company's next dividend is USD6.5 which is expected to remain stable in the coming years, till perpetuity. Your required rate of return is 16%. a. How much will you offer to buy this stock at? b. If the dividends will grow at a rate of 4% per year, what will be the dividend that the company will distribute in year 16? C. If the dividends will grow at a rate of 2%, what will be the price of the stock in year 9?
- the stock of midway cement is currently selling for $20 a share and is expected to pay a $1.5 divident at the end of the year. if you bought the stock now and sold it for 24$ after reciving the divident, what rate of return would you earn?You purchase a share of Zumunta Plc for GH¢50 per share today. If the share pays dividend of GH¢2.5 next year and sells for GH¢55, what will be the dividend yield , capital gain and the total returns?xyz company will pay an annual divident of 1,88 next year.The company future dvidents will increase by by 1.2 percent annualy.How much are you willing to pay for one share of the stocl if you require a rate of return of 9,68 percent
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