Given the following data, what is the stocks expected growth rate according to the Gordon model? Dividend per share just paid: $4.5 Current market price: $40 Required rate of return: 15 Assume the stock is priced in equillibrium. Select one. a .0412 b. .0337 c. 0612 d. .0553

Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (including dividends) Boom 0.35 $140 44.5% Normal growth 0.30 110 14.0 Recession 0.35 80 -16.5 Use the following equations to compute the mean and standard deviation of the HPR on stocks:

Stock X has the following data. Assuming the stock market is efficient and the stock is in equilibrium, which of the following statements is CORRECT? Expected dividend, D1 $3.00 Current Price, Po $50 Expected constant growth rate 6.0% O a. The stock's expected dividend yield is 5%. O b. The stock's expected dividend yield and growth rate are equal. O c. The stock's required return is 10%. O d. The stock's expected price 10 years from now is $100.00. O e. The stock's expected capital gains yield is 5%.

Questions: Refer to the data of Omani common stock at below table, answer the following questions: Calculate the required rate of return (RRR) of stock. If beta coefficient decreases from 1.5 t0 0.5, what is the affect required rate of return. Build a theoretical framework depends on result of above questions. Beta Coefficient Stock Market Return Risk-free Return 1.5 10% 6%

Suppose your expectations regarding the stock price are as follows:  State of the Market   Probability         Ending Price       HPR (includingdividends)   Boom   0.30       $ 140       53.5 % Normal growth   0.28         110       17.5   Recession   0.42         80       −12.0                               Use the equations E(r)=Σsp(s)r(s)E(r)=Σsp(s)r(s) and σ2=Σsp(s) [r(s)−E(r)]2σ2=Σsp(s) [r(s)−E(r)]2 to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

The dividend-growth model may be used to value a stock: Do(1+9) V = k - g Round your answers to the nearest cent. a. What is the value of a stock if: Do = $3.10 k = 12% 9 = 8% b. What is the value of this stock if the dividend is increased to $4.30 and the other variables remain constant? $ c. What is the value of this stock if the required return declines to 9 percent and the other variables remain constant? d. What is the value of this stock if the growth rate declines to 5 percent and the other variables remain constant? e. What is the value of this stock if the dividend is increased to $3.70, the growth rate declines to 5 percent, and the required return remains 12 percent? $

Suppose your expectations regarding the stock price are as follows: HPR (including dividends) 50.5% 20.5 -18.5 State of the Market Boom Normal growth Recession Probability 0.20 0.22 0.58 Mean Standard deviation - Use the equations E (r) = Ep (s) r(s) and o² = Ep (s) [r(s) — E(r)]² to compute the mean and standard deviation of the HPR on S S stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Ending Price $ 140 110 80 % %

what are the two type parts of most stocks expected total return? if D1=$2.00, g= 6% and po $40.00, what are the stocks expected dividend yield, capital gains yield, and total expected return for the coming year?

Stocks X and Y have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT?   X   Y   Price $25 $25 Expected dividend yield 5% 3% Required return 12% 10%   a. Stock X pays a higher dividend per share than Stock Y.     b. One year from now, Stock X should have the higher price.     c. Stock Y pays a higher dividend per share than Stock X.     d. Stock Y has the higher expected capital gains yield.     e. Stock Y has a lower expected growth rate than Stock X.

a. Using the dividend discount model, what is the current market value of a stock (i.e., PO) that has a par value of $0.10 per share, a dividend growth rate of 5%, and an expected dividend of $ .80 per share at the end of the year, assuming your required rate of return for the stock is 12.5%? Assume the market is at equilibrium.