Assume that a company’s shares has intrinsic value P125 per share and is trading at P130. This company requires an 6% minimum rate of return and will pay a dividend per share next year which is expected to increase by 4% annually. a. How much the company will pay for dividend per share? b. What is the status of the shares in the market?

a) Company X is expected to pay an end-of-year dividend of $5.25 a share. After the dividend its stock is expected to sell at $350. If the market rate is 11.5% p.a., what is the current stock price? b) If the beta of a stock is 1.0, and financial analysts expect the market to grow 5% during the next year, will you expect the stock of Company X to rise or fall? Calculate by what percentage, on average, the stock price increases/decreases. Romanoff Company does not plan to pay any dividends until year 3. Financial managers expect the dividend in year three to be $2.65 and dividends in future years to grow at a constant rate of 4.5%. Calculate the value of the stock of Romanoff Company today if the firm's risk-adjusted required rate of return is 18% p.a.

Suppose a company just paid dividnd of $2.19.The dividend is expected to grow at 5.99% each year. If the stock is currently selling for $102.09, what is the requird rate of return o 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?

Stoneheart Group is expected to pay a dividend of $3.23 next year. The company's dividend growth rate is expected to be 3.6 percent indefinitely and investors require a return of 12 percent on the company's stock. What is the stock price? Multiple Choice. $26.92 $38.45 $36.53 $39.84 49421

16) Suppose Bank is trading share at 17$ today. The company pays dividend of 0.25. The analysts claimed that in one year, target price will be 32$. What is the expected return?

Best Corporation is expected to pay $.60 next year and $1.10 the following year and $1.25 each year thereafter. If the required return is .14, what is the priice of the stock? $7.40 $2.95 $8.24 $2.22

The stock price of XYZ Co. is $24.82. Investors require an 8.46 percent rate of return on similar stocks. If the company plans to pay a dividend of $2.52 next year, what constant growth rate (in percent) is expected for the company's stock price? Answer to two decimals.

Suppose a firm is operating in 2 periods. The shareholders are expecting to receive $100,000 economic profits (per share of stock) in period 1 and $120,000 (per share of stock) in period 2. Given the required rate of return is the same in both period, which 0.05 and the real option value is $50,000. What is the current value of a share of stock? (Report your answer with 2 decimal points)

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