What should be the price of the stock in 5 yrs time?
Q: A stock is expected to paid a dividend of f $2.9 you just sold it for $218. If you bought it for…
A: Dividend = d = $2.9 Ending value of stock = e = $218 Beginning value of stock = b = $100
Q: A stock just paid a dividend of $1.86. Going forward, dividends will be paid annually and grow at a…
A: In this example we can use dividend discounting model of constant growth to find out the fair price…
Q: Jefferson's recently paid an annual dividend of $2 per share. The dividend is expected to decrease…
A: Current Dividend (D0) = 2 Constant growth rate (g) = -1% Required rate of return…
Q: Beta Corporation is expected to pay the following dividends per share over the next two years,…
A: Most amount willing to pay is present value of all future cash flows discounted at required rate of…
Q: A stock pays dividends annually. It just paid a dividend of $11 that is expected to grow at a…
A: Current price of stock is the price which can be paid for purchase of the stock. It is also called…
Q: Pharsalus Inc. just paid a dividend (i.e., ) of $ 3.61 per share. This dividend is expected to grow…
A: The market price or present value (there is no difference between present value and market price in…
Q: A share of stock pays a constantly growing (end-of-the-year) dividend. If the stock sells for…
A: Current price of the share$146.06Dividend Yield9.28%Total Return required-5.80%
Q: Summerdahl Resort's common stock is currently trading at $33 a share. The stock is expected to pay a…
A: Given data; Stock price = $33 expected dividend = $3 growth rate =4%
Q: Suppose that you opened a margin account (margin requirement = 60%) with your brokerage firm.…
A: STEP 1 The gain or loss of an investment over a given time period, represented as a percentage of…
Q: Holtzman Clothiers's stock currently sells for $19.00 a share. It just paid a dividend of $2.50 a…
A: Compute the stock price at the end of year 1, using the equation as shown below: Stock price=Current…
Q: Tresnan Brothers is expected to pay a $2.9 per share dividend at the end of the year (i.e., D1 =…
A: Stock’s value per share can be calculated using dividend discount model. Here, Next dividend ,…
Q: You are planning to buy stocks in ALPHA Corp and hold for one year. At the end of the year, you…
A: We invest in financial assets like stocks etc. with the expectation to earn a return from them. The…
Q: The Meddle Group paid a dividend of $7.00 last year. The company plans to keep the dividend of $7.00…
A: Dividend = $7.00Require a return = 10.7%The stock price of a perpetuity, where a constant dividend…
Q: 1.MYG Corporation just issued some new preferred stock. The issue will pay an annual dividend of…
A: Annual dividend (d) = $2.50 Required return (r) = 0.05 Period till year 3 (t) = 3 years Value will…
Q: Suppose Acap Corporation will pay a dividend of $2.81 per share at the end of this year and $2.96…
A: The concepts of dividend discount model will be used here. As per the concept of dividend discount…
Q: Summerdahl Resort's common stock is currently trading at $26 a share. The stock is expected to pay a…
A: To calculate the cost of common equity we will use the below formula Cost of common equity =…
Q: Last year you bought 100 shares of National Corporation common stock for P53 per share. During the…
A: The rate of return earned over the year is calculated as capital gain yield plus the dividend yield
Q: She Goes, Inc., will pay a year-end dividend of $3 per share. Investors expect the dividend to grow…
A: Gordon's growth model is one of the most commonly used variations of the dividend discount model.…
Q: Big Brothers, Inc. has a preferred stock outstanding that pays a $6 annual dividend. If investors'…
A: A preference share is a source of capital that charges a fixed dividend obligation. Preference…
Q: tockade Corp. just paid a dividend of $1.95 per share on its stock. The dividends are expected to…
A: Current dividend = d0 = $1.95 Growth rate = g = 6% Required rate of return = r = 11%
Q: Summerdahl Resort's common stock is currently trading at $39 a share. The stock is expected to pay a…
A: The dividend discount model states that dividends are a good indicator of a company's financial…
Q: Davin Wenig, an investor with a 13% required rate of return, wants to buy shares of eBay (ticker…
A: The dividend discount model is a technique that helps to compute the current value of the stock…
Q: The common stock of Royal Ranch House is selling for $19.17. The firm pays dividends that are…
A: FV = A * (1+r)n where , FV = future value A = current stock price r = growth rate n =time period.
Q: A stock just paid a dividend this morning of $1.39. Dividends are expected to grow at 11.00% for the…
A: Current dividend = d0 = $1.39 Growth rate for first 2 years = G2 =11% Growth rate for year 3 = G3 =…
Q: The Meddle Group paid a dividend of $6.00 last year. The company plans to keep the dividend of $6.00…
A: Dividend = $6.00Require rate of return = 7.5% = 0.075
Q: What is the value of the stock based on the dividend discount model? If the price of the stock in…
A: We can determine the intrinsic price of the stock using the formula below:If the intrinsic price is…
Q: Jeyna is considering buying a stock. The company paid $10 in dividends in the last 12 months, with a…
A: The Dividend Discount Model (DDM) is a method of valuing the intrinsic value of a stock by using its…
Q: The common stock of Royal Ranch House is selling for $19.70. The firm pays dividends that are…
A: Data given: Price of stock (P)=$19.70 Growth rate (g)=4.10% N= 8 years Required: Estimated price…
Q: You are interested in buying the stock of a company. You expect the following annual dividends for…
A: Fair price of the stock is that amount which can be paid by the investor for purchasing the stock in…
Q: A stock is expected to paid a dividend of f $3.4 you just sold it for $173. If you bought it for…
A: Dividend = d = $3.4 Ending value of stock = e = $173 Beginning value of stock = b = $81
Q: Suppose you purchased a stock a year ago. Today, you receive a dividend of $12 and you sell the…
A: given, Dividend = $ 12 Sale value = $ 111 Return = 8% Let Purchase value be 'x' Capital gain…
Q: Summerdahl Resort's common stock is currently trading at $40 a share. The stock is expected to pay a…
A: Cost of common equity = (D1/ Current stock Price) +growth rate
Q: Your friend told you about a stock that they think will sell for $154 in one year. They do not pay…
A: The expected return on investment refers to the rate of profit or loss that an investor realizes…
Q: Sky High Co. just paid a dividend of $4.9 per share on its stock (Do). The dividends are expected to…
A: Last paid dividend (D0) = $4.9Constant growth rate (g) = 5% or 0.05Required rate of return (r) =…
Q: She Goes, Inc., will pay a year-end dividend of $3 per share. Investors expect the dividend to grow…
A: The stock price can be computed using the Gordon growth model.
Q: ABC Inc. just paid a dividend of $2 and the dividends are expected to indefinitely grow at a…
A: In the Given question following details are given for ABC Inc. Just paid dividend = $2 Growth rate =…
Q: Last year you bought 100 shares of NC Corp. common stock for P53 per share. During the year you…
A: The rate of return is simply calculated as capital gain yield plus dividend yield
Q: Miller Hardware paid an annual dividend of $1.10 per share recently. Today, the company announced…
A: The Dividend Discount Model refers to a model which is being used in order to predict or find out…
Q: Carnes Cosmetics Co.'s stock price is $50, and it recently paid a $1.75 dividend. This dividend is…
A: The value of a stock today is the present value of all future dividends. This is as per the dividend…
Q: What is the expected dividend yield on Trump stock for the first year? Answer .04 Be sure to round…
A: Dividend yield refers to a ratio which shows the relationship between the annual dividend and…
Q: Carpenter, Inc. has perfected stock that pays a dividend of $2.25 at the end of each year. If your…
A: Solution:- Preferred stock are those shares which pay a fixed dividend per period, generally…
Q: Tim Burr Wolff believes that Builtrite will pay the following dividends over the next 3 years:…
A: Yield to maturity (YTM) is the overall rate of return that a bond will have earned once all interest…
Q: A preferred stock pays $3.5 annual dividends each year into the future. If the value of this stock…
A: In the given question we require to calculate the required rate of return on the preferred stock…
Q: Stock price of General Motors Company is 49.90 on July 17. If you buy 100 shares today and hold them…
A: Potential Capital Gain (Loss)To calculate the potential capital gain (loss) from holding 100 shares…
Q: A stock recently paid a dividend of $4.50. The dividend is expected to grow, indefinitely, at 9% per…
A: Recently paid dividend (D0) = $4.50Constant growth rate (g) = 9% or 0.09Required rate of return (r)…
Robin Williams is interested in buying stock, in a company that is increasing its dividends at a constant rate of 6.2%. Last year they paid a dividend of $2.65. The required
What should be the price of the stock in 5 yrs time? (round 2 decimal places)
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- Robin Williams is interested in buying stock, in a company that is increasing its dividends at a constant rate of 6.2%. Last year they paid a dividend of $2.65. The required rate of return is 18%. What is the current value of this stock? (round 2 decimal palces)$_____________You originally purchased Hershey stock at $161. It paid a dividend of $3.00 in the last year. Currently, the stock is selling for $156 per share. What is your total return if you sell the stock today?Jenny Banks is interested in buying the stock of Fervan, Inc., which is increasing its dividends at a constant rate of 9.0 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 17.0 percent. What is the current value of this stock? What should be the price of the stock in year 5?
- You are trying to decide whether to invest in a "value" stock (Hawaii Utility Co.) or a "growth" stock (HI Tech Co.). Hawaii Utility Co. currently pays a dividend of $5 per share per year, and you expect that dividend to grow by 1% per year forever (e.g., $5.05 next year). Its price is $125. HI Tech Co. currently pays a dividend of just $1 per share per year, but you expect its dividend to grow 4%6 per year forever. The price of HI Tech Co is also $125. Given your expectations, is one company a better deal than the other? Explain why or why not? (Hint; figure out the discount rate you would need to rationalize each price using the present value rules that we went over in class).XYZ, Inc. just paid dividend of $16.34. The dividends are expected to grow at 7.36% each year forever. The required rate of return on the stock is 15.55%. What is today's price of the stock?.Jenny Banks is interested in buying the stock of Fervan Inc., which is increasing its dividends at a constant rate of 6 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 16 percent. What is the current value of this stock? What should be the price of the stock in Year 5?
- (Calculating rates of return) The common stock of Placo Enterprises had a market price of $10.38 on the day you purchased it just one year ago. During the past year the stock had paid a dividend of $0.74 and closed at a price of $11.57. What rate of return did you earn on your investment in Placo's stock? The rate of return you earned on your investment in Placo's stock is%. (Round to two decimal places.)You are investing in a share of stock. The share just paid a dividend of $7.46. The dividend has been growing and is expected to grow forever at a rate of 5.26% per year. You require a 12.89% rate of return on the stock investment. What would be a fair price/share in 8 years? (Answer to nearest $0.01)You are interested in a stock that just paid an annual dividend of $3.60. The corporate management announced that future dividends will increase by 4.40% annually. What is the amount of expected divided in year 12? (Round your answer to the nearest hundredth; two decimal places) Your Answer: Answer
- 7. Doctors' Inc. just paid an annual dividend of $2.00 last week and is currently selling for $25 per share (not necessarily the value). Its dividends are expected to increase by 5% annually. Based on the riskiness of Doctors' Inc's stock, your required rate of return is 15%. What should be your trading strategy on this stock? a. b. C. d. e. Buy the stock at $25.00 if you don't own it as it is worth $21.00 per share. Sell the stock if you own it at $25.00 as it is worth $21.00 per share. Buy the stock at $25.00 if you don't own it as it is worth $28.00 per share. Sell the stock if you own it at $25.00 as it is worth $13.50 per share. Nothing, the stock is fairly priced at $25.00 per share.Falon coorperation is using new common stock at a market price of $28.35. Dividends last year were $1.35 and are expected to grow at an annual rate of 6.6 percent forever. What is Falons cost of common equity capital? (Round to 2 decimal places)One year ago you bought the common stock of Mizuho at ¥1050 in Tokyo Stock Exchange. The price is ¥1000 today. You received a dividend of ¥120 per share during the period. The exchange rate was ¥100 = $1 when you bought the stock and it is ¥80 = $1 today. Calculate the realized dollar rate of return on the stock if you sell the stock today. Select one: -6.89% O b. 28.11% O C. 33.33% O d. 23.13% a.
