Valuing a share of a stock (P) that pays a constant dividend forever: Assume you expect the dividend to be $1.50 in one year (not right away, but wait one year out. Required rate of return is 5%. What is the Price of a share of this stock? $42 ○ $1500 $30 None of the above 易

Company X pays dividend of $2.25 next year. Dividend grows at 5% per year forever. Investor A wants to buy this stock. Investor A expects return of 10%. What is the maximum amount A pays to buy Stock X? a) $47.25 b) $45.00 c) $49.50 d) $40.91

You plan to pay $80 for a share of preferred stock that pays a $2.80 dividend per year forever. What annual rate of return will you realize? Group of answer choices 18.66 % 1.73 % 6.0 % 5.0 % 3.50%

Suppose the current price of a stock is $50 per share. You expected to earn a 10% return on the stock if you buy it at the current market price and hold it for one year (right after you receive the dividend for the year). The stock is expected to pay a dividend of $2.5 per share, what do you expect the stock price to be one year from now? • Suppose the current price of a stock is $50 per share. You expected to earn a 10% return on the stock if you buy it at the current market price and hold it for one year (right after you receive the dividend for the year). The stock one year from now is expected to be $53, how much dividend do you expect to receive during the year .

Hudson Corporation will pay a dividend of $2.30 per share next year. The company pledges to increase its dividend by 2.40 percent per year indefinitely. If you require a return of 10.30 percent on your investment, how much will you pay for the company's stock today? 3 E Multiple Choice O $28.43 $29.11 $30.28 $27.95 R

Crate stock is expected to pay dividends of $1 per share one year from today, and $1.5 per share in year two, and you estimate the value of the stock at the end of year two will be $17.50. What is the most you would be willing to pay for the stock today, if you plan to sell it in two years and if you require a 10% retum? O $20.21 $16.75 $16.90 O $16.61.

A stock that pays a constant dividend of $1.50 forever currently sells for $10.71. What is the required rate of return? O 10% O 12% O 13% O 14% O 15%

How much would you be prepared to pay for a share in two years' time when it begins to pay a $0.17 dividend each year and is currently priced at $3? Assume the required rate of return is 8.5% p.a.

Suppose you bought a stock of company AT&T_today: After 3 years, you can sell it at $30 At the end of each year, you can get $1 dividend . What is the current value of this stock? (the prevailing interest rate is 10%)

Consider a share of stock in a company that will pay a dividend of $20 one year from today and immediately liquidate its assets. Your expected share of the liquidated assets is $5. Your time value of money is such that you consider $1.05 a year from today is equivalent to $1.00 today. What is the maximum you would be willing to pay for a share of stock in this company?​   a. ​$25.00   b. ​$17.39   c. ​$23.81   d. $20.00     2. An example of a currency board regime might be if the United States were to pledge to     a. ​undertake an intervention in the currency market if the US dollar approaches the lower bound.   b. ​convert or exchange US dollars for the euro at any time at a stated fixed price because the euro is the anchor currency of the US dollar.     c. ​undertake an intervention in the currency market if the US dollar approaches the upper bound.   d. ​undertake an intervention in the currency market if the euro approaches…