Kellogg Co. (K) recently earned a profit of $4.02 earnings per share and has a P/E ratio of 20.25. The dividend has been growing at a 4 percent rate over the past few years. If this growth rate continues: 1) what would be the stock price in five years if the P/E ratio remained unchanged? 2) What would the price be if the P/E ratio declined to 15 in five years?

If Target Corp. (TGT) recently earned a profit of $6.07 earnings per share and has a P/E ratio of 16.5. The dividend has been growing at a 10 percent rate over the past few years. If this growth continues, what would be the stock price in five years if the P/E ratio remained unchanged?

Vijay shiyal

Krell Industries has a share price of $21.55 today. If Krell is expected to pay a dividend of $1.08 this year and its stock price is expected to grow to $24.57 at the end of the​ year. The dividend yeild is? (Round to one decimal place)The capital rate gain is? (Round to one decimal place)The total return is? (Round to one decimal place)

Whizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and the investors require a return of 12%. i) Compute the current stock price for Whizcom Inc.ii) What would be the likely stock price in year 5?iii) What would be per annum rate of return implied by a change in prices from time 0 to time 5?

What did I set up incorrectly on this problem?

Suppose 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?

Orwell Building Supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price? a. $41.58 b. $42.64 c. $43.71 d. $44.80 e. $45.92 What is the capital gains yield in the first year for Orwell Building Supplies using the information from the previous question? a. 8.33%. b. 6.87%. c. 12.00%. d. 6.00%. e. 8.00%.

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6% per year. Callahan's common stock currently sells for $25.75 per share; its last dividend was $2.00; and it will pay a $2.12 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.  % If the firm's beta is 1.1, the risk-free rate is 3%, and the average return on the market is 14%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.  % If the firm's bonds earn a return of 12%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the judgmental risk premium of 4% in your calculations. Round your answer to two decimal places.  % If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do not round…

The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 7% per year. Callahan's common stock currently sells for $25.25 per share; its last dividend was $2.00; and it will pay a $2.14 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.  % If the firm's beta is 2.0, the risk-free rate is 6%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.  % If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places.  % If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost…