ch 11 What is the value of a common stock if (using the dividend growth model) the firm's earnings and dividends are growing annually at 3 percent, the current dividend is $2.00, and investors require a 9 percent return on investments in common stock? Round to the nearest penny, no commas or dollar signs

Q17 A firm does not pay a dividend. It is expected to pay its first dividend of $0.20 per share in three years. This dividend will grow at 11 percent indefinitely. Use a 12 percent discount rate.Compute the value of this stock. (Round your answer to 2 decimal places.) STOCK VALUE

Problem 4: Ordinary Shares, no growth rate: The expected rate of return of the shareholders is 18%. The expected dividend to be received one year from now is P27. What should the value of each share be?

Problem 9.27 Staggert Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, the company expects its dividend growth rate to be constant at 8.5 percent. If the required rate of return is 17.0 percent, what is the current value of the stock? (Round intermediate calculations and final answer to 2 decimal places, e.g. 16.25.) Current value Click if you would like to Show Work for this question: Open Show Work

2. Problem 10.04 (Cost of Equity with and without Flotation) еВook Problem Walk-Through Jarett & Sons' common stock currently trades at $24.00 a share. It is expected to pay an annual dividend of $2.50 a share at the end of the year (D1 = $2.50), and the constant growth rate is 3% a year. a. What is the company's cost of common equity if all of its equity comes from retained earnings? Do not round intermediate calculations. Round your answer to two decimal places. % b. If the company issued new stock, it would incur an 8% flotation cost. What would be the cost of equity from new stock? Do not round intermediate calculations. Round your answer to two decimal places.

Q14: Suppose a company is expected to pay a dividend of $2.30 per share next year.  Assuming the dividend growth rate is 5% a year and the market requires a return of 12%, how much should the stock be selling for?

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