Question description
1.) What
is the price of a stock today if the most recent dividend was 2.50, the
growth rate is 4.0%, and the required rate of return is 15%.
2.) What
is the estimated price of a stock going to be in 4 years if the most recent
dividend paid was $1.00, the growth rate of dividends is estimated at 3.0% and
the discount rate for the stock is 10.0%?3.) There
is a stock that just paid a dividend of $5.50 per share. The dividend is
expected to grow at a rate of 30% per year for 5 years, and then grow at a rate
of 5% per year thereafter. If the required rate of return for the stock
is 16%, what is the estimated price of the stock TODAY?
4.) What
is the dividend yield on a stock that pays a dividend of $1.45 next year and
has an expected return of 13% along with a growth rate of 4%?
5.) What
should the price of a preferred stock be if it pays a dividend of $2.45 per
year and has a required rate of return of 11.9%? Your answer should be to
2 decimal places. Don’t include a “$” sign in your answer.
