A stock is expected to pay dividends in 8 periods. The first dividend will be $2.55 and subsequent dividends are forecasted to stay constant for the foreseeable future. If the required return on the stock is 11.0%, what is its current value?
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A stock is expected to pay dividends in 8 periods. The first dividend will be $2.55 and subsequent dividends are
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- A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate, g, throughout time. The stock’s required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of gL?The market price of a stock is $21.90 and it is expected to pay a dividend of $1.52 next year. The required rate of return is 11.04%. What is the expected growth rate of the dividend? SubmitA year from now, the expected price of a stock is $178; the expected dividend is $3. The required return is 10%. What is the appropriate price for the stock today? answer is 164.55
- A stock is expected to pay a dividend of $4.6 at the end of this year (this is Div1), and it should continue to grow at a constant rate of 6.8% per year forever. If its required return is 11.3%, the stock's price today should be $______________.A stock is expected to pay a dividend each year in the future of 40 and has a current price of 1000. Assuming Shiller’s present value model holds, what is the required rate of return on this stock?A stock is expected to pay a dividend of $1.76 at the end of the year. The required rate of return is rs = 16.07%, and the expected constant growth rate is g = 4.2%. What is the stock's current price?
- If you buy a stock for a price of $23 and if you expect the stock to pay a dividend of $1.242 one year from now and to grow at a constant rate g = 8% in the future, then the required rate of return will be __________.A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is ?s = 10.5%, andthe expected constant growth rate is g = 6.4%. What is the stock's current price?A stock’s next dividend is expected to be $1.5. The required rate of return on stock is 16.3%, and the expected constant growth rate is 5.6%. What is the stock’s current price?
- A stock will pay a dividend of $2.1 and the dividend is expected to grow at a constant rate of 6% forever. If the required return is 13%, what is the value of the stock? Answer:The current price of XYZ stock is OMR80.00. Dividends are expected to grow at 5% indefinitely and the most recent dividend was OMR2.75. What is the required rate of return on XYZ stock?Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 16%.A share of stock sells for $50 today. It will pay a dividend of $6 per share at the end of the year. Its beta is 1.2. What do investors expect the stock to sell for at the end of the year?