If you require a 20 percent rate of return on an investment such as this, how much would you be willing to pay per share?

You are considering purchasing a stock that is expected to pay a dividend of $5 at the end of the year. The dividends for this firm are expected to grow at a constant rate of 5%. Based on the riskiness of the stock, you require a return of 9%. If you pay $73 for this stock today, what is your expected return?

A stock sells for a price of $60. Next year's dividend will be $3 per share. If the ROE ("project return") on reinvested funds is 10% and the company has a payout ratio of 40%, what must be the market rate (r)?

California Fishing Company (CFC) is expected to pay a dividend next year of $50 per share.  Future Dividends for CFC are expected to grow at a rate of 5% per year indefinitely. If an investor is currently willing to pay $500 each CFC share, what is the investor’s required return for this investment?

SirMag Complex just announced that they are increasing the annual dividend to $2.75 and establishing a policy whereby the dividend will increase by 3 percent annually thereafter. How much will one share of this stock be worth six years from now if the required rate of return is 14.5 percent?

As a financial analyst working for CSFB your job is to evaluate the equity value of the WIFI Inc. Your research identified the following information about that firm: it would pay an annual dividend of $1.20 per share next year (in 2022) and the required rate of return on capital is 20%. (a) Suppose that dividends are expected to stay constant forever. What is the maximum amount you would pay today (in 2021) for WIFI Inc?   For parts b, c and d assume that dividends grow at a constant 3% rate a year forever. (b) What is the maximum amount you would pay today (in 2021) for WIFI Inc’s share of stock? (c) What is the capital gains yield for WIFI Inc.? (d) What is the dividend yield for WIFI Inc.? For part (e) assume that the dividends will be as follows $1.20 in 2022, $1.40 in 2023 and $1.60 in 2024. After that, dividends are projected to increase at a constant rate of 2% per year forever. (e) How much are you willing to pay today (in 2021) to buy one share of this stock?

Suppose your company is expected to grow at a constant rate of 4 percent long into the future. In addition, its dividend yield is expected to be 7 percent. If your company expects to pay a dividend equal to $1.62 per share at the end of the year, what is the value of your firm's stock? Round your answer to the nearest cent.

Suppose you are thinking of purchasing the Luna Co.’s common stock today. If you expect Luna to pay $2.5, $2.625, $2.73, and $2.81 dividends at the end of year one, two, three, and four respectively and you believe that you can sell the stock for $40.97 at the end of year four.  If you required return on this investment is 9%, how much will you be willing to pay for the stock today?

Martin's Inc. is expected to pay annual dividends of $3.00, $3.50 and $4.00 a share over the next three years. After that, dividends are expected to increase by 3.00% annually forever. What is the current value of this stock to you if you require an 9.00% rate of return on this investment? Question 27 options: $79.17 $ 77.45 $57.43 $61.81

You are evaluating a company's stock. The stock just paid a dividend of $1.75. Dividends are expected to grow at a constant rate of 5 percent for a long time into the future. The required rate of return (Rs) on the stock is 12 percent. What is the fair present value? Please show all the steps, including the equation(s).