A company currently reported dividend of $12. It is expected that will reinvest 50% of its earnings perpetually. The return on equity of the company is 20% and remains unchanged in the future. Suppose the cost of equity of the company is 13%, what is the fair price of the stock based on the dividend discount model?

North Side Corp’s dividends for year 1, year 2, year 3, and expected share price for year 3 are: D1=$1.95, D2=$2.10, D3=$2.18, and P3=$95 respectively.  What is the company’s current share price given the required return of 8 percent?

Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a dividend of $.46 per share during the following year, and the share price at the end of the year was $50. a.Capital Gains Yield  b.Divadend Yield c.Total rate of return

A company currently pays a dividend of $4 per share (Do = $4). It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years and then at a constant rate of 8% thereafter. The company's stock has a beta of 1.7, the risk-free rate is 6.5%, and the market risk premium is 2.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

Assume Coleco pays an annual dividend of $1.90 and has a share price of $38.00. It announces that its annual dividend will increase to $2.20. If its dividend yield is to stay the same, what should its new share price be? The new share price should be $ (Round to the nearest cent.)

Assume that shareholder's required rate of return (r) is 9%. Dr. Pepper is expected to pay a dividend of $2.00 per share (D1) next year. Moreover, investors expect dividends to grow at a constant rate of 4% per year (g). According to the Dividend Discount Model, what should be the current price per share of Dr. Pepper?

What is the dividend yield if the annual dividend per share is $7.50 and the market price of a share of stock is $97?