The CFO of General Electric corporation is deciding if his company should invest 500,000 shares of Lightbridges industries.They manufacture innovative smart led light systems for residential homes.Lightbridge industries stock price is currently listed at $24.84 per share, and the expected dividend yield is 5.4%. a) What is the expected value of the first dividend payment at the end of the year? b)How would you use the dividend yield model to value the price of a stock if it presently does not pay dividends but is expected to pay dividends in the future?

Imagine a firm that plans to distribute a dividend of $5.00 next year. Due to financial issues, the CEO wants to stop the dividend payments in Year 2 and Year 3. At the end of Year 4, this firm will restart its dividend payments with $5.00 per share. If the dividends after year 4 are expected to grow 0% per year forever and the cost of equity of this stock is 11.4%, what is the current stock price? $41.80 $38.14 $40.09 $43.64 $45.87

Mike wants to invest in a business in the manufacturing sector. He needs to understand the value of this company's shares as the recent annual dividend was N$2.50 per share(D0=N$2.50) and the required return is 12%. Find the market value of Textile CC shares under the following; 15.1. If dividends are expected to grow at a constant annual rate of 8% to infinity. 15.2 Dividends are expected to grow at an annual rate of 5% for each of the next 4 years, followed by a constant annual growth rate of 6% in years 5 to infinity 15.3 Dividends are expected to grow at an annual rate of 0% to infinity.

Newman Manufacturing is considering a cash purchase of the stock of Grips Tool. During the year just​ completed, Grips earned ​$3.72 per share and paid cash dividends of ​$2.02 per share ​(D0=$2.02​).  Grips' earnings and dividends are expected to grow at 40​% per year for the next 3​ years, after which they are expected to grow 9​% per year to infinity. What is the maximum price per share that Newman should pay for Grips if it has a required return of 10​% on investments with risk characteristics similar to those of​ Grips?