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?
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Q: WHAT IS THE VALUE OF THE COMMON STOCKS? IF THE COMMON STOCK HAS AN ANNUAL DIVIDEND OF $200 PER…
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Q: What is the Value of the common stock? if the common stock has an annual dividend of $200 per share…
A: Dividend (D) = $200 Required return (r) = 8% Growth rate (g) = 4%
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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. 3633.33
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- another solution and answer for this problem 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. 3633.331. 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.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
- 3. What is the intrinsic value of a share of stock if expected dividends are $8/share and the expected price year is $90/share? Assume a discount rate of 10%. What is the expected return and what should be the decision from an investor?. in 1What rate of return should you expect to earn on an investment in the stock described below if you bought it at its current market price? Stock A Earnings: $3.00 per share Dividend: $1.50 per share Expected growth rate: 5% Current market price: $60 per share 5.0% O 10.0% O 2.5% O7.5% Ruestion 11 How did you solve the problem above? Show your work. P Type here to search mi 75The 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? $
- Suppose you have just purchased a share of stock for $58.50. You expect a dividend next period of $2.50 which will grow at a rate of 15% indefinitely. What must your expected rate of return be on the stock you have just purchased? Select one: A. 4.27% B. 15.38% C. 19.27% D. 19.91% E. None of the above1. 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 aboveThe dividend-growth model may be used to value a stock: Round your answers to the nearest cent. a. What is the value of a stock if: Do = $2.30 k = 8% 9 = 5% V = Do(1+g) k-9 $ 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 6 percent and the other variables remain constant? $ d. What is the value of this stock if the growth rate declines to 3 percent and the other variables remain constant? $ e. What is the value of this stock if the dividend is increased to $2.90, the growth rate declines to 3 percent, and the required return remains 8 percent? $
- A. What is the investor's required rate of return for Green Gadgets' stock? ________% (round to two decimal paces) B. Assuming that the investor's required rate of return for Green Gadget's stock does not change, what would you expect to happen to the price of its common stock if it cuts dividend to $3? $_______ (round to the nearest cent) C. Should Green Gadgeds cut its dividend? ( select from the drop down menus) Green Gadgets Should / Should not cut the dividend because cutting the dividend will increase / decrease the value of the common stock.What is the intrinsic price of a stock that pays a dividend of $2.43, has a dividend growth rate of 3.5% and a Beta of 1.20? The market return is 5.15% and the risk free rate is 3%. O A. $21.84 O B. $33.66 O C. $40.67 O D. $120.92 QUESTION 18 What is the intrinsic price of a stock that pays a dividend of 60 cents, has a dividend growth rate of 4.80% and a Beta of 2.57? The market return is 7.75% and the risk free rate is 2.5%. O A. $1.22 O B. $5.62 O C. $6.19 O D. $25.39A 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. $34.67
