1. A stock just paid a dividend of $1.56, has a required rate of return of 13%, and a constant dividend growth rate of 5%. What price should this stock be selling for?

Q: A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for…

A: Details given in the question are : Just paid dividend (D0) = $2 Growth rate (g) = 15% = 0.15…

Q: The expected constant-growth rate of dividends is ______% for a stock currently priced at $66, that…

A: The value which is determined by how much someone is willing to pay for it is the value of the…

Q: A share of common stock has just paid a dividend of $2.50 (D0).  If the expected long-run growth…

A: In this we have to use Gordon constant growth model formula.

Q: A share of common stock just paid a dividend of $1.08. If the expected long-run growth rate for this…

A: Current dividend = $1.08 Growth rate (g) = 5.4% Next dividend (D1) = 1.08*(1+0.054) = 1.08*1.054 =…

Q: The expected constant-growth rate of dividends is ______% for a stock currently priced at $76, that…

A: We need to use constant growth model to calculate growth rate P0 =D0(1+g)r-g where P0=current market…

Q: A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this…

A: Here, D0=$1 growth rate "g" = 5.4% required rate of return "r" = 11.4%

Q: What is the current price of a share of stock when last year’s dividend was P3.00, the growth rate…

A: This question is based on dividend growth model, according to which the price of a stock is given by…

Q: Suppose you know that a company’s stock currently sells for $54 per share and the required return on…

A: Current Stock price =$54 Required return = 9% Capital gain and dividend yield are equal Then,…

Q: The preferred stock of KICO store, is selling currently at RM47.13. If the required rate of return…

A: Preferred Shareholders are entitled to have a fixed rate of dividend. Although there is no statutory…

Q: 1. If the required rate of return is 5 percent and the stock pays a fixed S5 dividend, its value is…

A: Value of stock = Dividend / Required Rate of return Value of stock = 5 / 5% Value of stock =100…

Q: WHAT IS THE VALUE OF THE COMMON STOCKS? IF THE COMMON STOCK HAS AN ANNUAL DIVIDEND OF $200 PER…

A: Value of the common stock can be calculated using Gordon growth model.   Value of common stock =…

Q: c) Suppose that Troy Inc. has just paid a $3 dividend per share. If the required rate of return is…

A: Calculate the price of the stock as follows: Stock price today = (Expected dividend) / (Required…

Q: A share of common just paid a dividend of $1.00. If the expected long-run growth rate for this stock…

A: The formula to calculate value of stock is given below:

Q: A stock just paid a dividend of DO = $1.75. The required rate of return is rs=12.0%, and the…

A: In this question we need to compute the current stock price from the below given details : Just paid…

Q: e) A firm just paid a $1.50 dividend per share today. If the required rate of return is 12% and the…

A: Calculate the stock price today as follows: Stock price today = (Expected dividend) / (Required…

Q: Find the current market price of Sitara Chemicals Stock assuming dividends grow at a constant rate…

A: Stock is a security which is offered by the companies to arrange the funds. Stock prices fluctuates…

Q: A company is expected to pay a dividend of $6.73 in the following period. If the expected growth…

A: D1 = $6.73 Growth rate (g) = 4% r = 11%

Q: A share of Koko's common stock just paid a dividend of $1.00. If the expected long-run growth rate…

A: Given information: Dividend paid (D0) : $1 Growth rate (g) : 5.4% Required return (r) : 11.4%

Q: What is the current price of a share of stock when the current dividend is $4.75, the growth rate is…

A: Current price of a share of stock is referred as current price or value of the share which is the…

Q: .If a stock pays a Tk.6 dividend this year, and the dividend has been growing 4%annually, then what…

A: Current Dividend = Tk.6 Growth rate = 4%  Required rate of return = 11%

Q: Your firm wishes to maintain a 5% dividend growth rate. Your current common stock price is $26 and…

A: Dividend Growth rate = 5%  Current common stock price = $26 Cost of return = 9%

Q: XYZ company has just paid a dividend of $1.15. The required rate of return on the stock is 13.4%,…

A: Dividend = $1.15Growth Rate = 8% or 0.08Required Rate of Return = 13.4% or 0.134 Calculation of…

Q: Using a dividend discount (constant growth) model, calculate the value of this common stock (Please…

A: Information Provided: Growth rate = 9% Required rate = 12% Dividend next year = $2.70

Q: Rattle me Bones, Inc.'s common stock is currently selling for $52.75 per share. You expect the next…

A: In the given question We need to compute the firm's cost of equity: Given details are : Stock Price…

Q: What is required return on equity with an annual dividend of $2.00, the price of a stock of $52.5,…

A: The expected return is the minimum required rate of return which an investor required from the…

Q: A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per…

A: Given: Beginning stock price =$50 per shareEnding stock price =$58 per shareDividend per share =$3…

Q: ABC Inc. just paid a dividend of $2 and the dividends are expected to indefinitely grow at a…

A: In the Given question following details are given for ABC Inc. Just paid dividend = $2 Growth rate =…

Q: • You observe a stock price of $18.75, You expect a dividend growth rate of 5% and the most recent…

A: As per divided discount model Required return = (DPS1/Po) + g Where's DPS1 = Expected Divided for…

Q: (1) ABC just paid a dividend of $1.50, which is expected to grow indefinitely at 4%. If the current…

A: Given details are : Current value of ABC share = $50 Just paid dividend (D0) = $1.50 Growth rate (g)…

Q: The expected constant-growth rate of dividends is _% for a stock currently priced at $66, that just…

A: The growth rate in the required rate of return is the annual growth in the dividend. The companies…

Q: A stock just paid a dividend of $3.85 and is expected to maintain a constant dividend growth rate of…

A: As per Dividend Discount Model,Ke = (D1/P0) + gWhereP0 = Current Stock priceD1 = Expected Dividendke…

Q: Guava Computers currently has earnings per share of $2.40, a dividend payment per share of $0.80,…

A: The rate of return on equity reflects the net earnings of the company given the worth of its equity.…

Q: Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for $33.00 per share.…

A: The rate of return that investors, specifically equity investors wants to realized from their equity…

Q: Suppose you know that a company's stock currently sells for $53.47 per share and the required return…

A: It is mentioned in the question that total return is equal divided into capital gain yield and…

Q: ABC’s stock has a required rate of return of 11.2%, and it sells for $55 per share. The dividend is…

A: This question is asking about the value of next year's dividend (D1). To calculate the dividend of…

Q: a stock is selling for 11 and pays dividend of 0.12 cents, growth rate Is 0.04 what Is the required…

A: Price of Stock = 11 Dividend = 0.12 Growth Rate = 4%

Q: The expected constant-growth rate of dividends is % for a stock currently priced at $79, that just…

A: Growth rate = Required return - ( Dividend1 / Price0 ) Return = [ Dividend + ( Sale price - Purchase…

Q: A stock is expected to pay a $0.39 dividend in one period. Dividends are expected to grow at a rate…

A: In the given question we require to calculate the intrinsic value of the stock. We can solve this…

Q: WICB’s stock’s intrinsic value is $48.40, the required rate of return is 12.5 percent and the…

A: The share price is the current market price of the share. It is the price of the share at any…

Q: What should be the current price of a share of stock if a $5 dividend was just paid, the stock has a…

A: As per DDM Current Price of a share = D0*(1+g) / (ke-g) where, D0 = Dividend just paid i.e. $5 g =…

Q: Suppose you know that a company's stock currently sells for $53.47 per share and the required return…

A: The dividend is the amount that is the return received to the shareholders from the organization on…

Q: a. What is the value of the stock if the current dividend is $1.30, the first stage growth is 18…

A: The Present value is the present worth of amount that will be paid or received in future.

Q: What price would you expect to pay for a stock with a 13% required rate of return, 4% constant rate…

A: The price to be paid can be calculated using the Dividend Growth Model.

Q: A stock just paid a dividend of $5.21 and is expected to maintain a constant dividend growth rate of…

A: Given: Recent dividend = $5.21 Dividend growth rate = 4.8% Current stock price = $73