IBQ has been paying a dividend of $1.25 per quarter for several years. Its management plans to continue with this dividend for two more quarters and then to start increasing its dividend by 1% per quarter, with the first increase in the third quarter of this year. The planned increase in dividends will be announced today. If IBQ stock currently requires a return of 18% effective per year, how much should its stock price increase when the company makes the announcement? (A) $8.80 (B) $6.94 (C) $5.50 (D) $4.40 (E) None of the above

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

SlowGrowth Corporation currently pays a dividend of $2.3 per year. Stock analysts expect the company would continue to pay the current dividend amount for three years and, after the three years, increase dividend by 2% per year in perpetuity. According to the stock analysts forecast of future dividends, what should be the stock price today if the discount rate is 4%?

Orkazana Corporation is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next three years, 20 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 12 percent, and the stock currently sells for $80 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Projected dividend

Over the past 10 years, the dividends of Party Time Inc. have grown at an annual rate of 16 percent. The current (D0) dividend is $3.8 per share. This dividend is expected to grow to $4.1 next year, then grow at an annual rate of 8 percent for the following 2 years and 5 percent per year thereafter. You require a 16 percent rate of return on this stock. Use Table II to answer the questions. Do not round intermediate calculations. Round your answers to the nearest cent. What would you be willing to pay for a share of Party Time stock today?$   What price would you anticipate the stock selling for at the beginning of year 3?$   If you anticipated selling the stock at the end of 2 years, how much would you pay for it today?$

CEPS Group is going to pay an annual dividend of OMR 1.98 a share on its common stock next year. This year, the company paid a dividend of OMR 1.85 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this common stock be worth five years from now if the applicable discount rate is 11.5 percent?