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- You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $65.74 for one share of the stock today, and you assume the share is riskless but require a return of 8 percent, what dividend payment must you expect to receive from the stock?Company A will pay a dividend at the end of each year at 200Php for the next 5 years for Stock A with a discount rate of 8%. On the other hand, Company B will pay annual dividend of 50php, 100Php, 150Php, 300Php, and 400Php respectively in the next 5 years for Stock B with a discount rate of 10%. Factoring resource constraint, which stock looks more attractive to an investor? Formula is attached in the imageWilliam Brown is interested in purchasing the common stock of Oriole, Inc., which is currently priced at $35.56. The company is expected to pay a dividend of $2.58 next year and to increase its dividend at a constant rate of 6.60 percent. What should the market value be if the required rate of return is 14 percent? - Market value of stock $
- You are considering the purchase of Ahlecs Company stock. You anticipate that the company will pay dividend of P2.25 per share next year and P2.50 per share the followiing year. You believe that you can sell the stock for P18.50 per share two years from now. If your required rate of return is 12.5%, what is the maximum price that would pay for a share?The FI Corporation’s dividends per share are expected to grow indefinitely by 8% per year. Required: If this year’s year-end dividend is $3.00 and the market capitalization rate is 10% per year, what must the current stock price be according to the DDM? Note: Round your answer to 2 decimal places. If the expected earnings per share are $9.00, what is the implied value of the ROE on future investment opportunities? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. How much is the market paying per share for growth opportunities (i.e., for an ROE on future investments that exceeds the market capitalization rate)? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.An investor who wishes to purchase the stock belonging to Entity A to hold for two years will receive a dividend of $ 0.7 per share for the first year, $ 1.3 for the second year from this investment, and at the end of the second He estimates that it can be sold for $ 12.0 USD. What is the real value of the stock if the minimum rate of return expected by the investor is 20%? a) 15b) 2.81c) 9.81d) 21.81e) 5.81 ============= If the discount rate is 9%, what is the present value of 5375 USD received at the end of each year for 12 years?a) 25000,375b) 10000,5c) 12450,5d) 15500,375e) 38490,375 ============== The price / earnings ratio of the beta company stock has been calculated as 7.4. If the expected earnings per share of this stock for the next year is 2.5 USD, what is the real value of the stock? If the stock of this company is currently trading at 25 USD, can the relevant stock be purchased? a) 18.5 and should not be boughtb) 36 and must be purchasedc) 45 and must be purchased d) 18.5…
- Suppose that you are willing to pay $450.33 today for a share of stock which you expect to sell at the end of one year for $500.25. If you require an annual rate of return of 15 percent, what should be the estimate of the amount of the annual dividend which you expect to receive by the end of Year 1 prior to the sale of the stock? Assume that the estimated return equals the required rate of return. Options: a. $17.63 b. $1.60 c. $10.99 d. $19.25 e. $3.60You are evaluating the purchase of Bell, Inc. common stock that just paid a dividend of $4.60. You expect the dividend to grow at a rate of 10% for the next four years. You plan to hold the stock for four years and then sell it. You estimate the price of the company’s stock to rise to $59.37 at the end of your four-year holding period. A required rate of return of 13% will be adequate compensation for this investment. Given your assumptions, what is the current value of Bell stock? Round to the nearest $0.01 (allow a couple of pennies of rounding). answer is 53.62An investor is evaluating the maximum amount they are willing to pay for a share of ABC Corporation stock. Using the Capital Asset Pricing Model they determined that their required rate of return is 9%. They estimate that the earnings per share for the next 25 years is $7.00, but only $5.00 after adjusting for inflation . Based on this information what is the maximum amount the investor should pay for one share?
- you are considering the purchase of zee company stock. you anticipate that the company will pay dividends of $3.50 per share next year and $4.00 per the following year. you believe that you can sale the stock for $20.00 per share two years from now. if your required rate is 10 percent, what is the maximum price that you would pay for a share of Zee company stock? Please don't provide answer in image format thank youYou are told by your investment advisor that Laduma Co. is expected to earn R5 per share next year, R6 per share the following year and that thereafter earnings are expected to grow by 8% per year. The dividend payout ratio is 60% and the required rare or return on Laduma shares is 15%. If the current share price is R40, would you expect your adviser to make a buy, hold or sell recommendation? If transaction costs are R2,50 per share, would you follow his advice?An investor is considering the purchase of a share of ABC Ltd at the begnning of the year. If his required rate of return is 10%, the year end expected dividend is Rs400 and year end price is expected to be Rs2600, compute the value of the share.