Zeta Corp. has a PE ratio of 20. It is expected to earn $2.00 per share in year 1. If investors expect a return of 12% per year on the stock, what is the premium for growth on the stock?
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- What is the premium for growth on the stock on these financial accounting question?Need helpA company currently pays a dividend of $1 per share (D0 = $1). It is estimated that the company's dividend will grow at a rate of 24% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.7, the risk-free rate is 9%, and the market risk premium is 4.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.
- A company currently pays a dividend of $3 per share (D0 = $3). It is estimated that the company's dividend will grow at a rate of 21% per year for the next 2 years, and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.5, the risk-free rate is 10%, and the market risk premium is 7%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent. Jackson Corporation's bonds have 8 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%. The bonds have a yield to maturity of 10%. What is the current market price of these bonds? Do not round intermediate calculations. Round your answer to the nearest cent.CanPro Co. is expecting that its dividend for this coming year will be $1.2 a share and that all future dividends are expected to increase by 3 percent annually. What is the required return of this stock if the current market price of the stock is $17?Yharnam Co. is expected to pay a dividend of D1 = $1.40 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.2, the Market Risk Premium is 6.25%, and the risk-free rate is 3.90%. What is the company's current stock price? Group of answer choices 24.06 18.59 28.00 22.40 21.88
- Dyer Furniture is expected to pay a dividend of D1 = $1.65 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.8% per year in the future. The company's beta is 1.19, the market risk premium is 5.55%, and the risk-free rate is 4.00%. What is Dyer's current stock price? (Round your answer to 2 decimal places.) Please work out the problem, do not use excel.Analysts expect Costco stock to pay a dividend of $3.70 in 1 year and is expected to sell for $374.41 at that time. If the required return is 5.0%, what is the value of the stock?A company currently pays a dividend of $2 per share (D0 = $2). It is estimated that the company’s dividend will grow at a rate of 20% per year forthe next 2 years and then at a constant rate of 7% thereafter. The company’sstock has a beta of 1.2, the risk-free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock’s current price?
- Raspusin Corp is expected to pay a $0.85 per share dividend at the end of the year (that is D1). The dividend is expected to grow at a constant rate of 2% a year. The required rate of return on the stock, rs is 17%. What is the stock’s value per share?Tresnan Brothers is expected to pay a $1.60 per share dividend at the end of the year (i.e., D1 = $1.60). The dividend is expected to grow at a constant rate of 10% a year. The required rate of return on the stock, rs, is 17%. What is the stock's current value per share? Round your answer to the nearest cent.Analysts expect Exxon Mobil stock to pay a dividend of $3.43 in 1 year and is expected to sell for $47.91 at that time. If the required return is 5.0%, what is the value of the stock?
