The dividend-Growth model may be used to value a stock: V= D0 (1+g) / k-g What is the value of a stock if : D0 = $2 k = 10% g = 6% What is the value of this stock if the dividend is increased to $3and the other variables remain constant? What is the value of this stock if the required return declines to 7.5 percent and the other variable remains constant? What is the value of this stock if the growth rate declines to 4 percent and the other variables remain constant? What is the value of this stock if the dividend is increased to $2.30, the growth rate declines to 4 percent, and the required return remains 10 percent?
The dividend-Growth model may be used to value a stock: V= D0 (1+g) / k-g What is the value of a stock if : D0 = $2 k = 10% g = 6% What is the value of this stock if the dividend is increased to $3and the other variables remain constant? What is the value of this stock if the required return declines to 7.5 percent and the other variable remains constant? What is the value of this stock if the growth rate declines to 4 percent and the other variables remain constant? What is the value of this stock if the dividend is increased to $2.30, the growth rate declines to 4 percent, and the required return remains 10 percent?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 14MC: (1) Write out a formula that can be used to value any dividend-paying stock, regardless of its...
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The dividend-Growth model may be used to value a stock:
V= D0 (1+g) / k-g
- What is the value of a stock if : D0 = $2
k = 10%
g = 6%
- What is the value of this stock if the dividend is increased to $3and the other variables remain constant?
- What is the value of this stock if the required return declines to 7.5 percent and the other variable remains constant?
- What is the value of this stock if the growth rate declines to 4 percent and the other variables remain constant?
- What is the value of this stock if the dividend is increased to $2.30, the growth rate declines to 4 percent, and the required return remains 10 percent?
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