A stock is expected to pay a dividend of $3.00 per share in year 1. The stock price after one year is expected to be $80 per share. The equity cost of capital is 10%, whereas the risk-free rate is 2%. What is the current stock price? $72.73 O $75.45 $81.37 $830.00

A preferred stock will pay a dividend of $1 per quarter. If the annual return is 6.06%, what is the stock worth today?

You observed that the most recent price of a stock was $50. If the stock's dividends are expected to grow at a constant rate of 6% per year, what is the estimated stock price in year 1 (i.e., P₁)? O $47.17 O $53.00 O $42.65 O $58.25

You are investing in a stock that is expected to pay a dividend per share of $3.5 in year 1, $3.7 in year 2, $3.9 in year 3, and $4.0 in year 4. The required rate of return on the stock is 9.5%. Analysts expect earnings per share (EPS) of $13 and a P/E ratio of 36 at the end of year 4. What is the intrinsic value of the stock?

A stock just paid a dividend of $1.51. The dividend is expected to grow at 21.84% for two years and then grow at 3.90% thereafter. The required return on the stock is 11.25%. What is the value of the stock?

A stock just paid a dividend of $1.05. The dividend is expected to grow at 27.09% for three years and then grow at 4.20% thereafter. The required return on the stock is 10.14%. What is the value of the stock?

You are considering purchasing a share of preferred stock with the following characteristics:                                                 par value                      =          $100                                     dividend rate               =          12% per year                                     payment schedule       =          quarterly                                     maturity date              =                                              required rate of return =          6% per year                                     current market price    =          $135 per share   Based on this information, answer the following:   A.  What is the dollar amount of the quarterly dividend on this stock?   B.  Using the Discounted Cash Flow Method, what is the dollar value of this stock?   C.  Using the Discounted Cash Flow Method, what is the annual expected return for this stock?   D.  Based on your answer to part B, should you invest in the stock?  Why or why not?   E.…

A stock has a price (i.e., present value of all cash flows from the stock expected by investors) of $33.00 today. It is expected to pay a dividend of $1.10 per share next year, $1.20 per share in the following year, $1.90 in the subsequent U years (i.e., pay a dividend of $1.90 in years 3 through year U+2 into the future), and then be sold for $36.00 in U+2 years (where that $34 represents the present value of all dividends expected after U+2 years). Compute the interest rate or expected return on this stock (i.e., iterate to find the r that sets the sum of the present value of the future expected cash flows equal to the $33 present value).  U=44

A stock is expected to pay its first $740 dividend in 1 year from now. The dividend is expected to be paid annually forever and grow by 5% pa. The discount rate is 6% pa. Estimate the current stock price. The current stock price should be: a.$74,000.02b.$65,859.75c.$14,800d.$12,333.33e.$10,976.62

A stock will pay a dividend of $3 and is expected to be worth $54.5 in 1 year.  If the stock is currently selling for $55, what is the return? Answer as a percent. Answer: