value of a common stock

Q: A stock has a current dividend of R0.32 with a growth rate of 8% annually. Assuming a 10% annual…

A: Given information: Current dividend amount is R0.32 Growth rate is 8% Annual discount rate is 10%

Q: A firm's stock has a required return of 9.00%. The stock's dividend yield (using the dividend to be…

A: A dividend is a return received by an investor from an investment made in the company. In the case…

Q: Find the dividend yield for a stock that pays an annual dividend of $1.26 per share and has a…

A: Dividend Yield = Annual Dividend / Current Price

Q: If the dividend yield for year 1 is expected to be 7% based on a stock price of $30, what will the…

A: Dividend Amount = Stock price * Dividend yield Dn = D0 * ( 1 + Growth rate )n

Q: The preferred stock of Denver Savings and Loan pays an annual dividend of 6.50. It has a required…

A: Preferred stock: It is one of the forms of financing, combining features of debt and common stock.

Q: share

A: Formula to calculate the price of the stock is: P = D1/(1+r)^1 + D2/(1+r)^2 +…

Q: An investor requires a return of 12 percent. A stock sells for $18, it pays a dividend of $1, and…

A: Gordon's growth model is one of the most commonly used variations of the dividend discount model.…

Q: A stock sells for $40 per share and pays a one-time dividend for the full year of $.75. One year…

A: Holding period is defined as the total amount that a person earns for keeping an assets for a period…

Q: Find the dividend yield for a stock that pays an annual dividend of $1.28 per share and has a…

A: Dividend Yield = Annual Dividend / Current Price

Q: what is the yield on a share of preferred stock, which has a $100 par value and is currently selling…

A: Given information: Par value of preferred stock is $100 Current price of stock is $140 Annual…

Q: The Uptowner will pay an annual dividend of $1.98 a share next year with future dividends increasing…

A: The Gordon model is a model that helps to compute the fair price of the stock with the help of…

Q: What's the value of the preferred stock if it is assumed it has an annual dividend of $7.50 per…

A: Preferred stock does not grant voting rights to shareholders and pays dividends to the shareholders…

Q: Preferred products has issued preferred stock with an annual dividend of $7.00 that will be paid in…

A: annual dividend = 7 Time = perpetuity Discount rate = 10%   Assuming face value to be =100

Q: Metrobank’s stock is currently trading at P25 per share. The stock’s dividend is projected to…

A: Dividend yield = Dividend per share/market price per share x 100

Q: Calculate the change in the current price of a common stock if the initial current price was $950,…

A: The company would be considering the change in price with a view to check on the growth of the…

Q: Net income for the year is  $ 45 million.What Price would you expect to pay if you bought the stock…

A: Given that: Number of shares = 15,000,000 (15,000,000/1)  Market price = $30 per share Stock…

Q: A common stock will pay tomorrow a dividend of $12. The dividend is expected to grow at 5% for 8…

A: Introduction: Present value refers to the current valuation for a future sum. Investors determine…

Q: What is the price per share of a stock with a par value of Php 5 000.00 per share, 10% dividend…

A: Fair value of a share can be calculated by many ways, but one of the easiest and most common ways is…

Q: What should you pay for a stock assuming you expect the following: a dividend of $1.00 paid at the…

A: Information Provided Cost of equity = 8% Dividend (both years) = $1 Selling price = $31

Q: A stock is expected to pay dividends of $2.00 and $2.20 in the next two years and sell for a price…

A: We need to use the concept of time value of money (TVM) to solve the question. The equation for TVM…

Q: The common stock of Ert Co. is expected to pay a dividend of $2.50 per share next year. The dividend…

A: Given information: Next year dividend is $2.50 per share Dividend growth rate is 3% Appropriate…

Q: A stock that pays an annual dividend of $0.68 per share has a current price of $32.00. Find the…

A: Dividend yield is calculated to understand how much the company is paying out relative to its…

Q: A common stock pays a current dividend of $2. The dividend is expected to grow at an 8-percent…

A: Current dividend =$2 Growth rate =8% Discount rate =12%

Q: Consider the valuation of a share of common stock that paid a $2 dividend at the end of last year…

A: Dividend discount model refers to a stock valuation model which is used by the company for…

Q: Metrobank’s stock is currently trading at P25 per share. The stock’s dividend is projected to…

A: Price of stock (P0) = P 25 Growth rate (G) = 7% Required return (R) = 10% Recent dividend = D0

Q: A preferred stock will pay a dividend of $1 per year. If the annual return is 7.63%, what is the…

A: Stock price today = Annual dividend / Annual return where, Annual dividend = $1 Annual return =…

Q: Hurricane Corporation expects to grow its dividend by 5% per year. The current dividend is $2 per…

A: Given details are as below : Current dividend (D0) = $2 Growth rate (g) = 5% Required rate of return…

Q: You expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in each of the next 3 years.…

A: Particulars Year Amount Dividend 1 1.00 Dividend 2 1.25 Dividend 3 1.50 Share price 3 20.00…

Q: Phillips Industries common stock currently sells for $50 and is expected to pay a dividend of $3.00…

A: The implied growth can be determined using the Dividend Yield plus Growth in Dividend formula. Given…

Q: CDB stock is currently priced at $65. The company will pay a dividend of $4.89 next year and…

A: Given: Stock price = $65 Expected dividend = $4.89 Required return = 11.2%

Q: Suppose the price of a stock is $85 and the continuously compounded interest rate is 6.25%. If the…

A: Dividend yield: The dividend yield is a financial measure that shows how much a firm pays out in…

Q: A firm is expected to pay a dividend of $2.85 next year and $3.15 the following year. Financial…

A: Terminal value of stock is the present value of stock at a future point of time after considering…

Q: If the dividend yield for year 1 is expected to be 7% based on a stock price of $30, what will the…

A: Dividend Yield  = Dividend Per Share/ Share Price  7% = Dividend per share/30 Dividend Per Share =…

Q: Preferred Products has issued preferred stock with an annual dividend of $8.25 that will be paid in…

A: The perpetuity is the never ending time period for the valuation of price of preferred shares. The…

Q: An issue of common stock currently sells for $60 per share and expected to pay $4 dividend per share…

A: Given the following information: Current price of stock: $60 per share Estimated dividends for the…

Q: A preferred stock will pay a dividend of $1 per quarter. If the annual return is 6.06%, what is the…

A: Here, Dividend per Quarter is $1 Therefore, Dividend per year will be: =$1*4 =$4 Annual Return is…

Q: What is the total rate of return on the stock? b. What are the dividend yield and percentage…

A: Dividend Yield: It represents the portion of the firm's share price that pays dividends. Hence, it…

Q: Sammy’s Treats’ stock is trading at $50 and also pays an annual dividend of $2 per share.   How much…

A: The dividend amount that is paid to the investors by the company, represented in percentage form is…

Q: A stock that pays an annual dividend of 0.60$ per share has a current price of 32.00$. Find the…

A: Dividend yield refers to the ratio of the annual dividend to the current share price. The dividend…

Q: A company's preferred stock pays an annual dividend of $4.00 per share. The stock is currently…

A: Current Dividend yield = Annual dividend per share / Current stock price

Q: A common stock priced at 78.56 dollars pays an annual dividend of $2.50 which is expected to grow…

A: Given details are : Stock Price = $78.56 Annual dividend = $2.50 Growth rate (g) = 5% We need to…

Q: What rate of return is expected from a stock that sells for $30 per share, pays $1.54 annually in…

A: The net profit or loss on the investment over a particular time period is term as the rate of…

Q: Company X is expected to pay an end-of-year dividend of $5 a share. After the dividend its stock is…

A: Market capitalization is the total value of all the company's stock. It is the total valuation of…