John have just purchased a share of Amber Inc. preferred stock. Amber will pay a $10 annual dividend, but the dividend payments will only start 7 years from now. What is the price of the stock today at a 6% discount rate?
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John have just purchased a share of Amber Inc. preferred stock. Amber will pay a $10 annual dividend, but the dividend payments will only start 7 years from now. What is the price of the stock today at a 6% discount rate?
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- You are planning to purchase the stock of Martie Inc. and you expect it to pay a dividend of $3 in 1year, $4.25 in 2 years, and $6.00 in 3 years. You expect to sell the stock for $100 in 3 years. If your required return for purchasing the stock is 12 percent, how much would you pay for the stock today?et’s say you want to purchase shares of Fontaine Ltd. and then hold this stock for six years. The company has a stated dividend policy of $2.00 annually per share for the next six years, at the end of which time you will sell the stock. You expect to be able to sell the stock for $35.00 at that time. If you want to earn an 8% return on this investment, what price should you pay today for this stock?the stock of midway cement is currently selling for $20 a share and is expected to pay a $1.5 divident at the end of the year. if you bought the stock now and sold it for 24$ after reciving the divident, what rate of return would you earn?
- If Amime bugs a share of Eticalat stock today. - he will be able to sell it in 3 years for $50.- he will receive a $1 dividend at the end of ench of those 3 yeare. If the prevailing interest rate is 10% , what is the value of a share of Etisalat stock today?Ghaith has bought shares of RIO, Inc. stock for $25.00 per share. He expects a $1.00 dividend at the end of this year. After 2 years, he expects to receive a dividend of $1.25 and to sell the stock for $28.75. What is Ghaith's required rate of return?Assume that your broker offers to sell you some shares of Gada Business Center common stock that paid a dividend of $2 at the end of last year. You expect the dividend to grow at the rate of 5 percent per year for the next 3 years, and, if you buy the stock, you plan to hold it for 3 years and then sell it If you plan to buy the stock, hold it for 3 years, and then sell it for $34.73, what is the most you should pay for it today?
- You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year. (Round your answers to the nearest whole number, if necessary) After 1 year, if you sell the shares for $50 per share, what is the percentage return that you earned? After 1 year, if you sell your shares for $60 per share, what is the percentage return that you earned?Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $1.75 yesterday. Bahnsen's dividend is expected to grow at 6% per year for the next 3 years. If you buy the stock, you plan to hold it for 3 years and then sell it. The appropriate discount rate is 12%. A. Find the expected dividend for each of the next 3 years; that is, calculate D1, D2, and D3. Note that D0 = $1.75. Round your answer to the nearest cent. B.Given that the first dividend payment will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PVs of D1, D2, and D3, and then sum these PVs. Round your answer to the nearest cent. Do not round your intermediate calculations. C. You expect the price of the stock 3 years from now to be $36.82; that is, you expect to equal $36.82. Discounted at a 12% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $36.82. Round your answer to the nearest…Suppose you bought a stock of company AT&T_today: After 3 years, you can sell it at $30 At the end of each year, you can get $1 dividend . What is the current value of this stock? (the prevailing interest rate is 10%)
- Assume that you plan to buy a share of National Company’s stock today and to hold it for 2 years. Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of P7.50 at the end of Year 2. In addition, you expect to sell the stock for P150 at the end of Year 2. If your expected rate of return is 15 percent, how much should you be willing to pay for this stock today? Use 5 decimal places in your computation Format: 111.11Assume that you plan to buy a share of National Company’s stock today and to hold it for 2 years. Your expectations are that you will not receive a dividend at the end of Year 1, but you will receive a dividend of P7.50 at the end of Year 2. In addition, you expect to sell the stock for P150 at the end of Year 2. If your expected rate of return is 15 percent, how much should you be willing to pay for this stock today? Use 5 decimal places in your computation Answer Format: 111.11You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year. (Round your answers to two decimal places, if necessary) After 5 years, if you sell your shares for $50 per share, what is the annual percentage return that you earned? % After 5 years, if you sell your shares for $60 per share, what is the annual percentage return that you earned? %