You are considering buying a stock that will pay a dividend of $2.5 next year. The dividend is expected to grow at 6.6% per year forever. The interest rate is 10.6%. What is the price of this stock today (in $ dollars)? $ O 62.50 O 78.38 23.58 O 48

You are considering purchasing stock in a company that is expected to pay a $ 3.34 dividend later this year and you require a return of 7.79%. Assume the dividend will continue to be paid each year thereafter and will grow every year as described below. C What is the maximum price you would be willing to pay if you expect a growth rate of 2%? $ 58.84 (Enter as a whole number with two decimal places, such as 10.19.) What is the maximum price you would be willing to pay if you expect a growth rate of 5%? $ 125.70 What is the maximum price you would be willing to pay if you expect a growth rate of 7%? $452.38 What is the relationship between the price of a stock and the firm's growth rate? O A. The stock price is exactly equal to the growth rate times the dividend. B. As the growth rate investors expect increases, the price they are willing to pay also increases. OC. As the growth rate investors expect increases, the price they are willing to pay decreases. O D. There is no relationship.

You are considering the purchase of a new stock. The stock is expected to grow at 2.52% for the foreseeable future and just paid a $2.88 dividend (D0). The required return is 8.2%. Based on this, what is the value of the stock? Round calculations to the nearest cent.

You are thinking about buying a stock and holding it for 3 years.  You expect that the stock will pay a dividend of $1.37 in 1 year, $2.12 in two years, and $3.18 in three years.  You expect to sell for $94.57 in 3 years.  If the required return is 13.67%, what is the value of the stock.

You are considering the purchase of a stock that yesterday announced EPS of $6.24. You feel that earnings will grow at 23% for the next three years. After that growth in earnings should level-off to 3% per year into the future. You require a return of 13%. Based on these assumptions, what would you pay for the stock today? $105.12 $141.83 $95.59 $119.50

Your company will pay a dividend of $4.00 next year and then have it grow annually at 16.00% for the following 3 years before growing at 2% indefinitely thereafter. The equity has a required return of 9.50%. What is the price of the stock today? Options   $71.28   $73.15   $75.03   $76.90   $78.78

stock X just paid a dividend of $1 and is expected to pay a $3 dividend per year for the foreseeable future. Given that the required rate of return on stock X is 5%, what would be the fair price of stock X 3 year from today? 1. $3.86 2. 4 3. 3.47 4. 4.86 5. 60

Crate stock is expected to pay dividends of $1 per share one year from today, and $1.5 per share in year two, and you estimate the value of the stock at the end of year two will be $17.50. What is the most you would be willing to pay for the stock today, if you plan to sell it in two years and if you require a 10% return? O $20.21 O $16.75 $16.90 $16.61.

Required Returns Suppose we observe a stock selling for $40 per share. The next dividend will be $1 per share, and you think the dividend will grow at 12 percent per of the stock? What will the stock be worth in five Problem 1.) 7.2. year forever. What is the dividend yield in this case? The capital gains yield? The total required return? (See Problem 3.)

10. I need help with finance home work question asap please A stock that currently sells for $120 has EPS of $20.75. What is the annual rate of return on this stock if the company is expected to pay a dividend per share in the amount of $18 each year forever?