A stock is expected to pay a dividend of $1.75 at the end of the year (i.e., D1 = $1.75), and it should continue to grow at a constant rate of 10% a year. If its required return is 14%, what is the stock's expected price 4 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
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![A stock is expected to pay a dividend of $1.75 at the end of the year (i.e.,
D1 = $1.75), and it should continue to grow at a constant rate of 10% a
year. If its required return is 14%, what is the stock's expected price 4
years from today? Do not round intermediate calculations. Round your
answer to the nearest cent.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b683749-58e5-4e30-bd6b-95e0226f4526%2Fd7c6247e-4aa9-40d1-99ca-b61dc25c571e%2Fbb7jvoj_processed.jpeg&w=3840&q=75)
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- A stock is expected to pay a dividend of $0.50 at the end of the year (i.e., D1 = $0.50), and it should continue to grow at a constant rate of 10% a year. If its required return is 14%, what is the stock's expected price 1 year from today? Do not round intermediate calculations. Round your answer to the nearest cent.A stock is expected to pay a dividend of $1.75 at the end of the year (i.e., D1 = $1.75), and it should continue to grow at a constant rate of 5% a year. If its required return is 15%, what is the stock's expected price 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.A stock is expected to pay a dividend of $2.25 at the end of the year (i.e., D1 = $2.25), and it should continue to grow at a constant rate of 8% a year. If its required return is 14%, what is the stock's expected price 4 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.
- A stock is expected to pay a dividend of $0.50 at the end of the year, and it should continute to grow at a constant rate of 6% a year. If its required return is 15%, what is the stock's expected price 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.A stock is expected to pay a dividend of $0.55 at the end of the year. The required rate of return is rs = 13.5%, and the expected constant growth rate is g = 7%. What is the stock's current price? (Round your answer to 2 decimal places.) Please work out do not use excelA stock is expected to pay a dividend of $2.5 one year from now, and the same amount every year thereafter. The stock's required return (indefinitely) is expected to be 11.6%. The stock's predicted price exactly 5 years from now, P5, should be $_______________. Do not round any intermediate work, but round your final answer to 2 decimal places (ex: $12.34567 should be entered as 12.35).
- A stock is expected to pay a dividend of $3 at the end of this year (this is Div1), and it should continue to grow at a constant rate of 6.7% per year. If its required return is 11.9%, the stock's price today should be $______________. Do not round any intermediate work, but round your final answer to 2 decimal places (ex: 12.34567 should be entered as 12.35).Clinton Corporation is expected to pay a dividend of $3.50 next year and $5.50 the year after that. At this point (end of year 2 beginning of year 3) the growth rate in dividends is expected to be 0.05 into the foreseeable future. The required return on stock's of similar risk is 12%. What is the current price Po? Answer should be to nearest penny: ex: 20.32 Be sure to round correctly 20.326 would be 20.33 Your Answer: AnswerA stock is expected to pay a dividend of $0.8 at the end of the year (D1=0.8), and it should continue to grow at a constant rate of 5% a year. If it's required return is 11%, what is the stock's expected price 5 years from today?
- Compute the annual expected return on a stock which has a market price of $112, pays no dividend and is expected to sell for $140+u dollars in 5 years? U=12Required: Investors expect the market rate of return this year to be 19.00%. The expected rate of return on a stock with a beta of 1.2 is currently 22.80%. If the market return this year turns out to be 17.60%, how would you revise your expectation of the rate of return on the stock? (Do not round intermediate calculations. Round your answer to 1 decimal place.) Revised rate of return %Suppose that Do = $1.00 and the stock's last closing price is $15.85. It is expected that earnings and dividends will grow at a constant rate of g = 3.50% per year and that the stock's price will grow at this same rate. Let us assume that the stock is fairly priced, that is, it is in equilibrium, and the most appropriate required rate of return is rs = 10.00%. The dividend received in period 1 is D1 = $1.00 × (1+0.0350) = $1.04 and the estimated intrinsic value in the same period is based on the D2 constant growth model: P₁: TS-8 Using the same logic, compute the dividends, prices, and the present value of each of the dividends at the end of each period. Activity Frame Dividend Price PV t 10.00% Period (Dollars) (Dollars) (Dollars) 0 $1.00 $15.85 1 1.03 16.46 $0.94 2 1.07 17.08 $0.97 3 1.11 17.69 $1.01 4 1.15 18.31 $0.97 5 1.19 18.92 $0.94 The dividend yield for period 1 is and it will The capital gain yield expected during period 1 is and it will each period. each period. If it is…
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