Suppose that you have just purchased a share of stock for $32. The most recent dividend was $2.2 and dividends are expected to grow at a rate of 4% indefinitely. What must your required return be on the stock?

The following graph shows the value of a stock's dividends over time. The stock's current dividend is $1.00 per share, and dividends are expected to grow at a constant rate of 4.50% per year . The intrinsic value of a stock should equal the sum of the present value (PV) of all of the dividends that a stock is supposed to pay in the future, but many people find it difficult to imagine adding up an infinite number of dividends Calculate the present value (PV) of the dividend paid today (Do) and the discounted value of the dividends expected to be paid 10 and 20 years from now (D1g and D2g). Assume that the stock's required return (r) is 5.40 % Note: Carry and round the calculations to four decimal places. Time Period Dividend's Expected Expected Dividend's Future Value Present Value Now End of Year 10 End of Year 20 End of Year 50 Using the blue curve (circle symbols), plot the future value of each of the expected future dividends for years 10, 20, and 50. The resulting curve will…

​(Calculating rates of​ return)  The common stock of Placo Enterprises had a market price of ​$9.96 on the day you purchased it just one year ago. During the past year the stock had paid a dividend of ​$0.85 and closed at a price of ​$11.55. What rate of return did you earn on your investment in​ Placo's stock?       Question content area bottom Part 1 The rate of return you earned on your investment in​ Placo's stock is enter your response here​%. ​(Round to two decimal​ places.)

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