Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- stock is priced at $50 per share. The stock has earnings per share of $7 and a market capitalization rate of 15%. What is the stock's present value of growth opportunities (PVGO)?arrow_forwardElectric Blue stock is expected to pay a dividend of $5.27 in 1 year and a dividend of $8.05 in 2 years. The stock is expected to be priced at $62.06 in 1 year and at $66.00 in 2 years. What is the current price of Electric Blue stock? The stock’s dividend is paid annually and the next dividend is expected in 1 year.arrow_forwardA stock just paid a dividend of $1.69. The dividend is expected to grow at 23.51% for five years and then grow at 3.84% thereafter. The required return on the stock is 12.81%. What is the value of the stock? Answer format: Currency: Round to: 2 decimal places.arrow_forward
- 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?arrow_forwardBoehm Incorporated is expected to pay a $5.00 per share dividend at the end of this year (i.e., D1 = $5.00). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 11%. What is the estimated value per share of Boehm's stock?arrow_forwardA 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?arrow_forward
- A stock just paid an annual dividend of $1.81 per share. The expected growth rate of the dividend is 5.02%. The required rate of return for the stock is 10.7% per annum. Based on the Constant Dividend Growth Model, what is the expected dividend yield for the stock for the coming year? Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34).arrow_forwardA 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=44arrow_forwardA 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.$10,976.62arrow_forward
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