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- You expect a company to pay a dividend of 2.50 next year and 3.50 a share for the following 2 years. At that point, you expect that the dividend will increase by 4% every year. If your required return is 8%, what would you pay for the stock today? USE EXCELCape Corp. Will pay a dividend of $2.64 next year. The company has stated that it will maintain a constant growth rate of 4.5% a year forever if you want to return of 12%, how much will you pay for the stock? What if you want a return of 8%? What does it tell you about the relationship between the required rate of return and the stock price?You are considering purchasing a stock that is expected to pay a dividend of $6 at the end of the year. The dividends for this firm are expected to grow at a constant rate of 5%. Based on the riskiness of the stock, you require a return of 9%. If you pay $66 for this stock today, what is your expected return?
- Your first task in your new job at an investment bank is to price a new stock issue. You expect the stock will pay a dividend of $2 per share starting 1 year after issue and that dividends will grow at 3.0% per year thereafter. The return on similar stocks is 5.5%. a. What price would you assign to the stock?Cape Corp. Will pay a dividend of $2.64 next year. The company has stated that it will maintain a constant growth rate of 4.5% a year forever if you want to return of 12%, how much will you pay for the stock? What if you want a return of 8%? What does it tell you about the relationship between the required rate of return and the stock price? -If procedure and answer could be typed in computer i would appreciate it!!!you are analyzing Citi as a potential stock investment. You're expecting them to pay a dividend of $2.50 next year (one year away) and then $3.50 for the year after. After the $3.50 dividend is paid you expect dividends will grow at a constant rate of 5% per year. You are expecting a return of 10%, what price would you be willing to pay for a share of Citi?
- In one year, a firm will pay a common stock dividend of $6.35. The dividends have been growing at 6% per year. Based on analysts' forecasts, you predict that you will be able to sell your stock for $48 per share after one year. If you require a rate of return of 13 percent on your stock, how much would you be willing to pay now for a share of the stock? O $51.27 O $45.85 O $42.11 O $58.54 O $48.10you have been offered the following investment. if your required rate of return is 20% p.a. how much would you be prepared to pay? ordinary shares which recently paid a dividend of K0.75 per share. the dividend has been growing at 10% p.a. and this rate is expected to continue for the next 3 years. after this time, the growth rate is expected to slow to 5% for the forseeable futureYou are valuing a stock. If you expect the dividend one-year from today (at t=1) to be $3.00 dividend, and you expect dividends to grow a rate of 30% each year for the following 10 years (t=2 to 11). After that, dividends are expected to grow at a constant 7%. What would you estimate the stock price to be if the required rate of return is 10%?
- A firm is expected to pay $1,6 dividend per share next year. The dividend is expected to grow at a 30% for 2 years and thereafter, decline and stay at a constant rate of 5%. The required rate of return is 11%. Find the stock price today.Candy Co is expected to pay dividends of 2.00 per share for the next two years (dividend in year 1 will be 2.00 and dividends in year two will also be 2.00). In the end of this two-year period and thereafter the constant growth rate of stock dividends is expected as 3%. The required rate of return is 13%. What should be the stock price of Candy co today? Answer Choices 20.60 24.33 19.47 22.60You expect a share of stock to pay dividends of $3 in one year. After that dividends are expected to grow at 10% for two years and after that you believe that the company will increase dividends at a constant rate of 6%. How much is your estimate for the stock price if the required rate of return is 12%?