A stock just paid an annual dividend of $7.8. The dividend is expected to gro 2% per year for the next 4 years. In 4 years, the P/E ratio is expected to be the payout ratio to be 60%. The required rate of return is 8%. Part 1 What is the intrinsic value of the stock?

You are evaluating a company's stock. The stock just paid a dividend of $1.75. Dividends are expected to grow at a constant rate of 5 percent for a long time into the future. The required rate of return (Rs) on the stock is 12 percent. What is the fair present value? Please show all the steps, including the equation(s).

A stock is expected to pay a dividend of $0.75 at the end of the year.  The required rate of return is r = 10.5%, and the expected constant growth rate is g = 5.6%.  What is the stock's current price?

A stock is selling for $50 in the market. The required rate of return is 9%. The most recent dividend paid is D0 = $3.0 and dividends are expected to grow at a constant rate g. What’s the expected capital gain for this stock?

Consider an example. Assume a share of preferred stock with the following characteristics:                                       Par value                     $100                                     Dividend rate              3.0% per year                                     Payment schedule       semiannual                                     Maturity date   You are analyzing this preferred stock for possible purchase.  Your required rate of return on this stock is 5% per year, compounded semiannually.    Draw a time line showing the expected dividends for this preferred stock.   Calculate the value of this preferred stock based on the required rate of return.   Assume that the current market price for this preferred stock is $75 per share. Calculate the expected return based on the market price.   Should you invest in the stock?   Why or why not?  Be sure to use your results                               from BOTH parts B and C above.   You are analyzing a share of XYZ…

Assume that a stock is giving $2 dividends and the expected rate of return is 10%, how much the stock price will be selling today?

A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 8.5%, and the constant growth rate is g = 4.0%. What is the current stock price? Select the correct answer.   a. $35.57     b. $36.47     c. $37.37     d. $38.27     e. $34.67

A stock that just paid a $1.15 annual dividend, will pay a $1.39 annual dividend next year, and will maintain that level of dividend growth forever. If the stock has a dividend yield of 6.7%, what rate of return are investors requiring on this stock? Ⓒa. 27.57% ✔ b. 22.87% c. 30.65% d. 31.97% O e. 32.33%

A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $59.   Required: a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $44. What are the dividend yield and percentage capital gain in this case?

stock X just paid a dividend of $1 and is expected to pay a $3 dividend per year for the foreseeable future. Given that the required rate of return on stock X is 5%, what would be the fair price of stock X 3 year from today? 1. $3.86 2. 4 3. 3.47 4. 4.86 5. 60