The current selling price of the stock is $36.72 The current selling price of the stock is $35.07 The current selling price of the stock is $25.08 The current selling price of the stock is $31.05
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- A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate, g, throughout time. The stock’s required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of gL?The Yempy Corp. is recently paid a dividend of $2. The dividends are expected to grow at 20% for next 4 years due to technological advanced and thereafter, the growth rate settles down to 2% for ever. The risk-free rate is 2.2% and the market risk premium is 6%. If the beta of the stock 1.3, what must be the current selling price of the company's stock? Calculate the current selling price of the stock. (A)The current selling price of the stock is $31.05 (B) The current selling price of the stock is $25.08 (C) The current selling price of the stock is $35.07 (D)The current selling price of the stock is $36.72 Answer A.The Yempy Corp. is recently paid a dividend of $2. The dividends are expected to grow at 20% for next 4 years due to technological advanced and thereafter, the growth rate settles down to 2% for ever. The risk-free rate is 2.2% and the market risk premium is 6%. If the beta of the stock is 1.3, what must be the current selling price of the company's stock? Calculate the current selling price of the stock. (A) The current selling price of the stock is $31.05 (B) The current selling price of the stock is $25.08 (C) The current selling price of the stock is $35.07 (D) The current selling price of the stock is $36.72
- The Yempy Corp. is recently paid a dividend of $2. The dividends are expected to grow at 20% for next 4 years due to technological advanced and thereafter, the growth rate settles down to 2% for ever. The risk-free rate is 2.2% and the market risk premium is 6%. If the beta of the stock is 1.3, what must be the current selling price of the company's stock? Calculate the current selling price of the stock.You are considering an investment in Crisp Cookware’s common stock. The stock is expected to pay a dividend of $2 a share at the end of this year (D1 = $2.00); its beta is 0.9; the risk-free rate is 5.6%, and the market risk premium is 6%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $25 a share. Assuming the market is in equilibrium, what does the market believe will be the stock’s price at the end of 3 years (i.e., what is P3)?You are thinking of buying a stock priced at $98 per share. Assume that the risk-free rate is about 4.7% and the market risk premium is 5.5%. If you think the stock will rise to $122 per share by the end of the year, at which time it will pay a $1.74 dividend, what beta would it need to have for this expectation to be consistent with the CAPM? The beta is (Round to two decimal places.)
- Wolfwire industries is expected to pay a dividend of $3.50 next year (D₁) and has a beta of 1.5. Dividend are expected to grow at a rate of 3% into the indefinite future. The expected return on the market Rm is 12% and the risk-free rate is 4%. What is the required return on Wolfwire stock? .04 .16 .14 O.18You are thinking of buying a stock priced at $106 per share. Assume that the risk-free rate is about 5.1% and the market risk premium is 6.4%. If you think the stock will rise to $115 per share by the end of the year, at which time it will pay a $2.59 dividend, what beta would it need to have for this expectation to be consistent with the CAPM?Crisp Cookware's common stock is expected to pay a dividend of $2.5 a share at the end of this year (D1 = $2.50); its beta is 0.6. The risk-free rate is 2.8% and the market risk premium is 6%. The dividend is expected to grow at some constant rate, gL, and the stock currently sells for $50 a share. Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years (i.e., what is )? Do not round intermediate calculations. Round your answer to the nearest cent.
- Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.85, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is Dyer's current stock price? Select the correct answer. a. $16.23 b. $16.70 c. $17.17 d. $15.29You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.00 a share at the end of the year (D1 = $2.00) and has a beta of 0.9. The risk-free rate is 3.7%, and the market risk premium is 4%. Justus currently sells for $33.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is P3) Do not round intermediate calculations. Round your answer to the nearest cent. Only typing answer Please explain step by stepYou are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.50 a share at the end of the year (D1 = $2.50) and has a beta of 0.9. The risk-free rate is 6.0%, and the market risk premium is 6%. Justus currently sells for $39.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is ?) Do not round intermediate calculations. Round your answer to the nearest cent.