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

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.

Melissa Cutt is thinking about buying some shares of EZLawn Equipment, at $48.97 per share. She expects the price of the stock to rise to $58 35 over the next 3 years. During that time she also expects to receive annual dividends of $3.51 per share. a. What is the intrinsic worth of this stock, given a required rate of return of 9%? b. What is its expected return? a. The intrinsic worth of this stock is $. (Round to the nearest cent.)

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.

A stock will pay its next dividend of $7.81 exactly 1 year from now. After this first dividend, future dividends will grow at -4% for 2 years and then 3% per year every year thereafter. If the stock market is efficient and the appropriate discount rate of 12.9%, what is the best guess of the company's stock price today? Round your answer to the nearest penny.

answer each component PLEASE.

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

Best Corporation is expected to pay $.60 next year and $1.10 the following year and $1.25 each year thereafter. If the required return is .14, what is the priice of the stock? $7.40 $2.95 $8.24 $2.22

You are contemplating the purchase of stock for Tenet Healthcare based on the recommendation of a financial advisor. The stock just recently paid a per share dividend of $2.00 and the dividend is expected to grow at a constant rate of 5% per year. If the required market rate of return on Tenet Healthcare stock is 12%: What is the expected dividend amount per share over the next three years? What is the stock's current estimated value and for each of the next three consecutive years? Estimate the expected divided yield, capital gains yield, and expected total return/yield for each of the next three years.