Assume that a stock is expected to pay dividends at the end of Year 1 and Year 2 of $1.25 and $1.56, respectively. Dividends are expected to grow at a 5% rate thereafter. Assuming that ke is 11.6%, the value of the stock is closest to: A. $22.30. B. $23.42. C. $24.55.

Return on Common Stock   You buy a share of The Ludwig Corporation stock for $18.50. You expect it to pay dividends of $1.00, $1.0510, and $1.1046 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $21.48 at the end of 3 years.   Calculate the growth rate in dividends. Round your answer to two decimal places.   %   Calculate the expected dividend yield. Round your answer to two decimal places.   %   Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)? Do not round intermediate calculations. Round your answer to two decimal places.   %

Return on Common Stock You buy a share of The Ludwig Corporation stock for $23.70. You expect it to pay dividends of $1.10, $1.1715, and $1.2476 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $28.63 at the end of 3 years.   Calculate the growth rate in dividends. Round your answer to two decimal places.   % Calculate the expected dividend yield. Round your answer to two decimal places.   % Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)? Do not round intermediate calculations. Round your answer to two decimal places.   %

Suppose a stock had an initial price of $50 per share, paid a dividend of $.80 per share during the year, and had an ending share price of $38. Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Total return Dividend yield Capital gains yield % % %

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A perpetual preferred stock pays a $1.65 annual dividend and has a required return of 5.81%. The value is closest to   A. $28.40. B. $31.33. C. $33.79. D. $36.55.

A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 7%, and if investors require a (n) 11% rate of return, what is the price of the stock? $47.50 $49.00 $50.50 $52.00 $53.50

Return on Common Stock You buy a share of The Ludwig Corporation stock for $21.00. You expect it to pay dividends of $1.09, $1.1772, and $1.2714 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $26.45 at the end of 3 years.   Calculate the growth rate in dividends. Round your answer to two decimal places.   % Calculate the expected dividend yield. Round your answer to two decimal places.   % Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)? Do not round intermediate calculations. Round your answer to two decimal places.   %

What is the price of a stock with an annual dividend of $30, required return on equity of 10%, and expected dividend growth rate of 7%? Select one: a. $1070 b. $960 , O c. $1015 d. $1135

am. 104.