A stock with a P/E of 20 and a PEG of 1.5 must have a higher expected growth rate than a stock with a P/E of 20 and a PEG of 0.5.  True  False A stock does not currently pay a dividend, but you expect to sell the stock for $58 in 5 years. The required return is 9%.  What is the value of the stock?

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?

A share of stock with a beta of 0.8 currently sells for $50. Investors expect the stock to pay a year-end dividend of $5. The T-bill rate is 1%, and the market risk premium is 6%. If the stock is perceived to be fairly priced today, what much be investors' expectation of the price of the stock at the end of the year? $_ Hint: [CAPM] Expected Return (R) = Rf + Beta *Market Risk Premium; Expected Return (R) = Dividend Yield + Capital Gains Yield, where dividend yield=D1/PO and capital gains yield = (P1-Po)/PO

If a stock's dividend is expected to grow at a constant rate of 5% a year, which of the following statements is correct? Select one: O a. O b. O c. The stock's dividend yield is 5%. The price of the stock is expected to decline in the future. The stock's required return must be equal to or less than 5%. Od. The stock's price one year from now is expected to be above the current price. e. The expected return on the stock is 5% a year.

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

A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 9.0%, and the constant growth rate is g = 4.0%. What is the current stock price? Select the correct answer.   a. $31.20     b. $33.18     c. $30.21     d. $34.17     e. $32.19

Investors expect the market rate of return this year to be 17.00%. The expected rate of return on a stock with a beta of 0.9 is currently 15.30%. If the market return this year turns out to be 15.00%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

An investor is interested in purchasing XYZ share which is currently trading at a market price of P200 in the stock market. An analyst determined that the said stock is overvalued as the market price is P50 more than its intrinsic value. 2% constant growth percentage is projected for this stock and a return of 12% is noted for stocks similar with XYZ. How much is the per share dividend expected to be declared at the end of the year?

The risk-free rate of return is 5%, the required rate of return on the market is 10%, and High-Flyer stock has a beta coefficient of 1.8. If the dividend per share expected during the coming year, D1, is $3.60 and g = 5%, at what price should a share sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

A share of stock with a beta of 0.69 now sells for $44. Investors expect the stock to pay a year-end dividend of $4. The T-bill rate is 6%, and the market risk premium is 9%. If the stock is perceived to be fairly priced today, what must be investors’ expectation of the price of the stock at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)