2. Exxon's dividends are expected to grow at a rate of 15% during the next two years, 10 % in the third year, and at a constant rate of 5% therea fter, Exxon's last dividend, which has just been paid, was $2.00. If the required rate of return on the stock is 12%, what would be the price of the stock in one year (P1) ? ↓ Do (1) $37,47 (2) $38,47 (3) $39,47 (4) $40.47 (5) $41,47

Please choose the correct answer

The Fl Corporation's dividends per share are expected to grow indefinitely by 8% per year. Required: a. If this year's year-end dividend is $3.00 and the market capitalization rate is 10% per year, what must the current stock price be according to the DDM? Note: Round your answer to 2 decimal places. b. If the expected earnings per share are $9.00, what is the implied value of the ROE on future investment opportunities? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. How much is the market paying per share for growth opportunities (i.e., for an ROE on future investments that exceeds the market capitalization rate)? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Current stock price b. Value of ROE c. Amount % per share

A company is currently paying dividend of Tk. 40 per share. The dividend is expected to grow at a 20% annual rate for two years, then at 15% rate for the next two years and then at 10% rate for the next two years, after which it is expected to grow at a 5% rate forever. What should be the current price of the share if required rate of return is 12%? (Consider upto 3 decimal placein case of all fractions).

Orwell Building Supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price? a. $41.58 b. $42.64 c. $43.71 d. $44.80 e. $45.92 What is the capital gains yield in the first year for Orwell Building Supplies using the information from the previous question? a. 8.33%. b. 6.87%. c. 12.00%. d. 6.00%. e. 8.00%.

H5.

A company just paid an annual dividend of $0.66. Dividends are expected to grow by 25% in 1 year, 20% in the second year, and 15% in the third year. After that, dividends are expected to continue to grow at an annual rate of 8% indefinitely. If the market's required rate of return on this stock is 17% per year. What is the current price per share?[Keep AT LEAST 4 decimal place on ALL intermediate steps. Round your final answer to 2 decimal places, expressed in dollars and cents (ie $12.34)] Current price =$ Blank 1. Calculate the answer by read surrounding text.

F2

Alset Inc. just paid a $2.30 dividend, and its dividends are expected to grow at the rate of 12% for 6 years. You assume that after year 6 the growth rate of dividends will slow down to 4% per year forever. If the expected return on a comparable stock is 8%, what should be your estimate of the fair value of the Alset Inc.s stock today?a. $82.25b. $78.34c .$90.09d. $86.17e. $94.01

Venus Airlines will pay a $8 dividend next year on its stock, which is currently selling at $100 per share. What is the market's required return on this investment if the dividend is expected to grow at 5% forever? 3% 13% 5% 10% unanswered