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- A Company is expected to pay a dividend of sh2 in the upcoming year. The risk-free rate of return is 4% and the expected return on the market portfolio is 14%. Analysts expect the price of the Company shares to be sh22 a year from now. The beta of the Company's stock is 1.25. Required: a. If the Company's intrinsic value is sh21.00 today, what must be its growth rate? Select one: a. 7% b. 4% c. 10% d. 6% e. 0.0% b. The market's required rate of return on the Company’s stock is _ Select one: a. 16.5% b. 17.5% c. 15.25% d. 14.0% e. none of the above c. What is the intrinsic value of the Company's stock today? Select one: a. sh12.12 b. sh20.00 c. sh22.00 d. none of the above e. sh20.60What should you pay for a stock if next year's annual dividend is forecast to be $5.25, the constant-growth rate is 2.85%, and you require a 15.5% rate of return?Finance MarionCo will pay a dividend of $3.66 one year from now and future dividends will grow at a constant rate of 1.0% per year. If investors require a return is 14.7%, what is the stock's intrinsic value? Round your answer to the nearest penny.
- What would you pay for a stock expected to pay a $2.50 dividend in one year if the expected dividend growth rate is zero and you require a 10% return on your investment?A firm will pay a dividend of $1.05 next year. The dividend is expected to grow at a constant rate of 3.42% forever and the required rate of return is 13.83%. What is the value of the stock?A corpus expected to pay a dividend of $1.25 per share at the end of the year (D1=$1.25). the stock sells for 27.50 per share and it's required return is 9.75 the dividend is expected to grow at some constant rate forever. what is the equilibrium expected growth rate?
- What would you pay for a stock expected to pay a $2.25 dividend in one year if the expected dividend growth rate is 3% and you require a 12% return on your investment?Whizcom 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%. a) What would be the likely stock price in year 5? b) What would be per annum rate of return implied by a change in prices from time 0 to time 5?Company Z is expected to pay a dividend of D1 = $2.20 per share at the end of the year, and that dividend is expected to grow at a constant rate of 4.00% per year in the future. The company's beta is 1.3, the Market Risk Premium is 6.00%, and the risk-free rate is 3.00%. What is the company's current stock price? Group of answer choices 32.35 35.59 27.50 36.67 55.00
- Suppose Dragons, Inc. is expected to pay an annual dividend of $0.85 at t=1. Thereafter the dividend will increase at a growth rate g = 25% for two years, and at a growth rate g = 3% after two years. What should you pay for the stock at t=0 if the appropriate discount rate is 8%? Group of answer choices 24.47 18.98 27.47 34.6720) A firm will start paying dividends 5 years from now and thereafter that will be expected to grow 5.4 % into perpetuity. The expected dividend in year 5 is $16.3. If an investor's required rate of return is 13.2 %, what is the intrinsic value of the stock?Franklin Corporation is expected to pay a dividend of $1.24 per share at the end of the year (D1 = $1.24). The stock sells for $32.40 per share, and its required rate of return is 7.2%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? (Round your answer to 2 decimal places.) Please work out the problem do not use excel.
