Suppose currently Samsung's common stock is selling for $195. The company announced that it will give $2.30 dividend next year and it plans to grow the dividend by 5% every year. Given the information what is the market's required rate of return for the stock?
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- Suppose currently Samsung's common stock is selling for $182. The company announced that it will give $1.19 dividend next year and it plans to grow the dividend by 4% every year. Given the information what is the market's required rate of return for the stock? (Round your answer to two decimal points)Suppose Malaysian Electronics stock is selling for $100 a share (Po = 100). Investors expect a $5 cash dividend over the next year (DIV1 = 5). They also expect the stock to sell for $110 a year hence (P1 = 110). What is the expected return to the stockholders?The common stock of Tomorrow, Inc. is selling for P28.75 in the open market. A dividend of P2.86 is expected to distributed and the growth rate of this company is estimated to be 6%. If Franz Babe, an average investor, is considering purchasing this stock at the market price, what is the expected rate of return?
- The stock price of Fujita Company is $62. Investors require a return of 10.1 percent on similar stocks. If the company plans to pay a dividend of $4.05 next year, what growth rate is expected for the company's stock price? Can someone explain how to do this with a financial calculator?Suppose Facebook Inc. currently pays $1 dividend. Analysts project that the dividend for the next three years will be $1, $2, and 5$. After that the annual dividend is predicted to grow at 5% per year. Investors require a 10% rate of return. What is the value of one share of Facebook stock under these assumptions?EXO'stock sells for $23.06, its next expected dividend is $1.20 and analyst expect its growth rate to be 8.3%. What is Exo's required rates of return? Express your answer in percentage.
- Suppose a firm’s last dividend was $1.10 (D0) and that it will grow by 10 cents per year over the next three years (years 1 to 3). After that, the firm’s dividend are expected to grow at a constant 4.00 percent per year. What should the current price of the firm’s stock (P0) be today if investors require a rate of return of 11.00 percent on the stock? (Do not round immediate calculations. Round to 2 decimals) A. $24.12 B. $16.74 C. $18.37 D. $17.04 (Please also provide instructions on how to solve using finance calculator)Provide detailed steps to solve the following question: XYZ stock currently sells for $50 per share. The next expected dividend is $2, and the growth rate is 6%. What is the expected rate of return on this stock? If the required rate of return on the stock were 12%, what would the stock price be?Suppose a company is expected to pay a dividend of $3.97 next year. The dividend is expected to grow at 6.21% each year. If the stock is currently selling for $260.26, what is the required rate of return on the stock?
- Whizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and the investors require a return of 12%. i) Compute the current stock price for Whizcom Inc.ii) What would be the likely stock price in year 5?iii) What would be per annum rate of return implied by a change in prices from time 0 to time 5?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 $17?Suppose Kaspi Bank is trading share at 25$ today. The company pays dividend of 0.25. The analysts claimed that in one year, target price will be 32$. What is the expected return?