WHAT IS THE VALUE OF THE COMMON STOCKS? IF THE COMMON STOCK HAS AN ANNUAL DIVIDEND OF $200 PER SHARE, AND THE REQUIRED RETURN ON COMMON STOCK IS 8% AND ASSUME TO GROW AT A CONSTANT RATE OF 4% IN DIVIDENDS
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WHAT IS THE VALUE OF THE COMMON STOCKS?
IF THE COMMON STOCK HAS AN ANNUAL DIVIDEND OF $200 PER SHARE, AND THE REQUIRED RETURN ON COMMON STOCK IS 8% AND ASSUME TO GROW AT A CONSTANT RATE OF 4% IN DIVIDENDS
Group of choices:
A. $3,633.33
B. $3030.33
C. $3,3333.33
D. $3,300.33
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- What is the Value of the common stock? if the common stock has an annual dividend of $200 per share and the required return on common stock is 8% and assume to grow at a constant rate of 4% in dividends? choose the best answer: A. 3030.33 B. 3,333.33 C.3300.33 D. 3633.33What is the current price of a share of stock when the current dividend is P4.75, the growth rate is 7%, and the investor's required rate of return is 11%? A. P118.75 B. P 43.16 C. P 46.20 D. P127.06Given the following data, what is the stock's expected growth rate according to the Gordon model? Dividend per share just paid: $3 Current market price: $35 Required rate of return: .10 Assume the stock is priced in equilibrium. Select one: O a. 2.45% O b. 4.32% O c. 3.56% Od. 1.32% c = X FILE
- 1. An analyst estimates that a stock will pay a $1 dividend next year and that it will sell for $40 at year-end. If the required rate of return is 14%, what is the value of the stock? A. $34.60. B. $35.52. C. $35.96. Please provide an accurte answer.1. If the required rate of return is 5 percent and the stock pays a fixed S5 dividend, its value is • A. $100 • B. $75 • C. S10 • D. $50 2.The P/E ratio is determined by • A. The required rate of return. • B. The expected dividend payout ratio. • C. The expected growth rate of dividends. • D. Choices a and b • E. All of the aboveA share of common stock has just paid a dividend of $3.00. If the expected long-run growth rate for this stock is 5 percent, and if investors require an 11 percent rate of return, what is the price of the stock? a. $50.50 b. $50.00 c. $52.50 d. $53.00
- A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 8.5%, and the constant growth rate is g = 4.0%. What is the current stock price? Select the correct answer. a. $35.57 b. $36.47 c. $37.37 d. $38.27 e. $34.67Suppose that the initial dividend on a stock is £1. The interest rate is 3 percent and the growth rate of dividends is constant at 2 percent. What Is the prics of the stock?What is the rate of return on a preferred stock that has a par value of $50, a market price of $46.50, and a dividend of $4.10? a. 8.20% b. 11.34% c. 8.82% d. 12.20%
- The dividend-growth model may be used to value a stock: Do(1+9) V = k - g Round your answers to the nearest cent. a. What is the value of a stock if: Do = $3.10 k = 12% 9 = 8% b. What is the value of this stock if the dividend is increased to $4.30 and the other variables remain constant? $ c. What is the value of this stock if the required return declines to 9 percent and the other variables remain constant? d. What is the value of this stock if the growth rate declines to 5 percent and the other variables remain constant? e. What is the value of this stock if the dividend is increased to $3.70, the growth rate declines to 5 percent, and the required return remains 12 percent? $A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $56. Required: a. What is the total rate of return on the stock? b. What are the dividend yield and percentage capital gain? c. Now suppose the year-end stock price after the dividend is paid is $48. What are the dividend yield and percentage capital gain in this case? A Required What is the total rate of return for the stock? B Required What is the dividend yield and percentage capital gain? C Required Now suppose the year-end stock price after the dividend is paid is $48. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 15 percent, and if investors require a 19 percent rate of return, what is the price of the stock? a. $71.86 b. $62.25 C. $44.92 d. $57.50 e. $64.00