Alset Inc. just paid a $2.30 dividend, and its dividends are expected to grow at the rate of 12% for 6 years. You assume that after year 6 the growth rate of dividends will slow down to 4% per year forever. If the expected return on a comparable stock is 8%, what should be your estimate of the fair value of the Alset Inc.s stock today?a. $82.25b. $78.34c .$90.09d. $86.17e. $94.01
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- EMKA corporation is going to pay a dividend of $1.5, $2, and $2.5 each year for the next three years. Afterwards, it is planing to increas the dividends at a constant rate of 10% indifinitely. How much should the stock be sold for if the required rate of return is 12%? Select one: a.$104.17 b.$102.59 c.$100.01 d.$105.64Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 45.00% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price? Select the correct answer. a. $60.10 b. $58.56 c. $57.02 d. $59.33 e. $57.79Target Corporation (TGT) just paid a $3.14 dividend, and it is expected to grow at 6.25% for the next 3 years. After 3 years the dividend is expected to grow at the rate of 2.95% indefinitely. If the required return is 7.12%, what is the stock’s value today? A. $61.67 B. $70.95 C. $84.97 D. $98.04
- If the last dividend paid by Chemical Brothers Inc. was $1.25 and analysts expect these payments to increase 4% per year, what will the stock price be next year if the required return is 15%? Select one: O a. $12.29 O b. $11.82 O c. $31.25 O d. $12.78 O e. $23.11The RLX Company just paid a dividend of $315 por share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely Assume investors require a return of 11 percent on this stock. a. What is the current price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What will the price be in three years and in fifteen years? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.. 32.16. a. Current price b. Price in three years Price in fifteen yearsWhizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and the investors require a return of 12%. i) Compute the current stock price for Whizcom Inc.ii) What would be the likely stock price in year 5?iii) What would be per annum rate of return implied by a change in prices from time 0 to time 5?
- Mclver's Meals, Inc. currently pays a OMR2 annual dividend. Investors believe that dividends will grow at 20% next year, 12% annually for the two years after that, and 6% annually thereafter. Assume the required return is 10%. What is the current market price of the stock? Select one: O a. OMR69.30 O b.OMR75.20 O c. OMR66.60 O d. OMR60.80 O e. OMR54.99The RLX Company just paid a dividend of $2.60 per share on its stock. The dividends are expected to grow at a constant rate of 5.75 percent per year, indefinitely. Assume investors require a return of 12 percent on this stock. a. What is the current price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What will the price be in four years and in sixteen years? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. a. Current price b. Price in four years Price in sixteen years $ 43.99A7X Corporation just paid a dividend of $1.40 per share. The dividends are expected to grow at 30 percent for the next 8 years and then level off to a growth rate of 6 percent indefinitely.If the required return is 12 percent, what is the price of the stock today? Choose the correct option A. 106.78 B. 2.30 C. 104.69 D. 81.49 E. 102.59
- Fowler, Inc., just paid a dividend of $2.90 per share on its stock. The dividends are expected to grow at a constant rate of 4.75 percent per year, indefinitely. Assume investors require a return of 9 percent on this stock. a. What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the price be in six years and in thirteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. Current price b. Price in six years Price in thirteen yearsThe Jackson-Timberlake Wardrobe Company just paid a dividend of $1.38 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. a. If investors require a return of 11 percent on the company's stock, what is the current price? Current price $24.15 b. What will the price be in 6 years? Stock price in 6 years $32.36Fowler, Inc., just paid a dividend of $2.70 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. Assume investors require a return of 9 percent on this stock a. What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the price be in six years and in thirteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Current price Price in six years Price in thirteen years
