Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Firm pay a dividend of $5.45 next year. annual growth rate is 3.25%. required return is 8.5%. what is the expected company stock?
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- Assume the current dividend is $4.00 and is expected to grow at a rate of 10% for 3 years and 6% thereafter. The expected return is 15%. What is the stock price?arrow_forwardConsider the stock of Davidson Company that will pay an annual dividend of 2 in the coming year. The dividend is wxpected to grow at a constant rate of 5 percent permanently. The market requires a 12-percent return on the company. What is the current price of share of the stock?arrow_forwardA firm is expected to pay an annual dividend of $2.40 per share next year. The market price of stock is $75.25 and the growth rate is 2.5%. What is the cost of equity?arrow_forward
- A company is expected to pay a dividend of D1 = $1.45 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price today?arrow_forwardA firm is expected to pay a dividend of $3.90 one year from now and $4.25 two years from now and $4.30 three years from now. The firm's stock price is expected to be $110.50 in four years. What is the firm's stock value using a 13.78% required return? ○ $75.56 $201.47 $73.36 ○ $65.93arrow_forwardSuppose 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?arrow_forward
- 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 $2.22arrow_forwardNoRagrets, Inc is expected to pay a dividend in year 1 of $2 and a dividend in year 2 of $2.40. After year 2, dividends are expected to grow at the rate of 6% per year. An appropriate required return for the stock is 9%. The stock should be worth today. Select one: O a. $73.37 O b. $79.63 O c. $67.32 O d. $73.21arrow_forwardCompany ZYX’s dividend is expected to grow at 7% for the next three years, and at 3% after. If interest rate is 5% and current dividend is $0.75, calculate firm fair stock price.arrow_forward
- Estimate the current market value of X-Co stock you expect to pay a dividend of $1.83/share next year and grow at a 2.5%/year rate in the future. You believe the cost of equity is 7.9%.arrow_forwardGordon Growth Company is expected to pay a dividend of $4 next period and dividends are expected to grow at 6% per year. The required return is 16%. What is the price expected to be in year 4? a. $40 b. $10 c. $41.6 d. $50.50arrow_forwardA corpus expected to pay a dividend of $1.25 per share at the end of the year (D1=$1.25). the stock sells for 27.50 per share and it's required return is 9.75 the dividend is expected to grow at some constant rate forever. what is the equilibrium expected growth rate?arrow_forward
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