Dallas Home Supply paid an annual dividend of $2.40 a share last year. Yesterday, the firm announced the dividend will increase next year by 10% and will stop increasing for 2 years (i.e., stay at the increased level for years 2 and 3) and then starting in year 4, the dividends will increase by 2%. The 2% increase will continue forever. If the required return on this stock is 12 percent, what is the current price of the stock?

NU inc. is going to pay dividends of $2/share, $3/share, and $4.1/share in the next three years, respectively. Starting in the fourth year, dividends will grow at a rate of 6.8%. If the required return is 10%, what is the current stock price? (Keep two decimal places)

CompuCon is a new firm that just paid an annual dividend of $2.25 per share. The firm plans to increase its dividend by 23 percent per year for the next four years and then decrease the growth rate to 5 percent annually. If the required rate of return is 10.25 percent, what is one share of this stock worth today?

The RLX Company just paid a dividend of $2.60 per share on its stock. The dividends are expected to grow at a constant rate of 5.75 percent per year, indefinitely. Assume investors require a return of 12 percent on this stock. a. What is the current price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What will the price be in four years and in sixteen years? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. a. Current price b. Price in four years Price in sixteen years $ 43.99

Fowler, Inc., just paid a dividend of $2.40 per share on its stock. The dividends are expected to grow at a constant rate of 6.25 percent per year, indefinitely. Assume investors require a return of 12 percent on this stock. a. What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the price be in four years and in sixteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) а. Current price b. Price in four years Price in sixteen years

A&T, Inc. paid an annual dividend of $1.47 per share last month. The company is planning on paying $1.56, $1.68, and $1.75 per share over the next three years, respectively. After that, the dividend will be constant at $1.80 per share per year. What is the market price of this stock if the market rate of return is 12 percent? $13.98 $14.65 $13.54 $14.16 O None of these answers are correct

The National Motor Company's last dividend was $1.25, and the directors expect to maintain the historic 4 percent annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase to 7 percent for the next three years and the stock will then reach $25.00 per share. How much should you be willing to pay for the stock if you feel that the 7 percent growth rate can be maintained indefinitely and you require a 16 percent return?

ABC Inc. paid an annual dividend of $1.78 a share last year. The company is planning on paying $1.92, $2.21, and $1.63 a share over the next 3 years, respectively. After that, the dividend will be constant at $3 per share per year. What is the intrinsic value of this stock today if the firm’s cost of equity is 10 percent?

NU Inc. is expected to pay a dividend of $4 every year in the next 5 years. NU always maintains a dividend payout ratio of 10% and has an average PE ratio of 16. The required return is 8%. What is the stock price? (Keep two decimal places)