Rework Table 7.4 for horizon years 1, 2, 3, and 10, assuming that investors expect the dividend and the stock price to increase at only 6% a year and th each investor requires the same 12% expected return. The company will pay dividend of $3 at the end of the first year. What value would an investor place on the stock? Do not round intermediate calculations. Round your answers to 2 decima places.

ets and OCK Valuation 4.5 percent forever. If the stock currently sells for $43.15 per share, what is the required return? 3. Stock Values For the company in the previous problem, what is the dividend yield? What is the expected capital gains yield? LO 1

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Use the Black-Scholes formula for the following stock: Time to expiration 6 months Standard deviation 60% per year Exercise price $57 Stock price $57 Annual interest rate 3% Dividend 0 Recalculate the value of the call with the following changes: a. Time to expiration 3 months b. Standard deviation 25% per year c. Exercise price $64 d. Stock price $64 e. Interest rate 6% Select each scenario independently. Note: Round your answers to 2 decimal places.

Manshukh

The next dividend payment by Savitz, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $42 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Give typing answer with explanation and conclusion  Huang Company's last dividend was $1.55. The dividend growth rate is expected to be constant at 22.5% for 3 years, after which dividends are expected to grow at a rate of 4% forever. If the firm's required return (rs) is 12%, what is its current stock price? Do not round intermediate calculations.

Baghiben

Company Z-prime's earnings and dividends per share are expected to grow by 4% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next year's dividend is $9, the cost of equity is 9%, and next year's EPS is $14. What is Z-prime's stock price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Stock price