The dividend-growth model may be used to value a stock: Round your answers to the nearest cent. V=D0(1+g) / k-g What is the value of a stock if:D0 = $2.50k = 10%g = 6% $ What is the value of this stock if the dividend is increased to $4.40 and the other variables remain constant? $ What is the value of this stock if the required return declines to 7.5 percent and the other variables remain constant? $ What is the value of this stock if the growth rate declines to 4 percent and the other variables remain constant? $ What is the value of this stock if the dividend is increased to $3.20, the growth rate declines to 4 percent, and the required return remains 10 percent? $
The dividend-growth model may be used to value a stock: Round your answers to the nearest cent. V=D0(1+g) / k-g What is the value of a stock if:D0 = $2.50k = 10%g = 6% $ What is the value of this stock if the dividend is increased to $4.40 and the other variables remain constant? $ What is the value of this stock if the required return declines to 7.5 percent and the other variables remain constant? $ What is the value of this stock if the growth rate declines to 4 percent and the other variables remain constant? $ What is the value of this stock if the dividend is increased to $3.20, the growth rate declines to 4 percent, and the required return remains 10 percent? $
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
Related questions
Question
The dividend-growth model may be used to value a stock:
Round your answers to the nearest cent.
V=D0(1+g) / k-g
- What is the value of a stock if:
D0 = $2.50
k = 10%
g = 6%
$
- What is the value of this stock if the dividend is increased to $4.40 and the other variables remain constant?
$
- What is the value of this stock if the required return declines to 7.5 percent and the other variables remain constant?
$
- What is the value of this stock if the growth rate declines to 4 percent and the other variables remain constant?
$
- What is the value of this stock if the dividend is increased to $3.20, the growth rate declines to 4 percent, and the required return remains 10 percent?
$
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