Question
In: Finance
ABC stock is expected to pay a dividend of $3.85 in 1 year. The stock is...
ABC stock is expected to pay a dividend of $3.85 in 1 year. The stock is currently priced at $64.80, is expected to be priced at $69.29 in 1 year, and is expected to be priced at $72.78 in 2 years. What is the dividend in 2 years expected to be for ABC stock? The stock’s dividend is paid annually and the next dividend is expected in 1 year.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A stock is expected to pay a dividend of $1 at the end of the year....
A stock is expected to pay a dividend of $1 at the end of the
year. The required rate of return is rs = 11%, and the
expected constant growth rate is 5%. What is the current stock
price?
Select one:
a. $16.67
b. $18.83
c. $21.67
d. $23.33
e. $20.00
The primary operating goal of a publicly-owned firm interested
in serving its stockholders should be to
Select one:
a. Maximize its expected total corporate income
b. Maximize its expected...
A stock is expected to pay a dividend of $0.71 at the end of the year....
A stock is expected to pay a dividend of $0.71 at the end of the
year. The dividend is expected to grow at a constant rate of 7.9%.
The required rate of return is 12.3%. What is the stock's current
price?
Note: Enter your answer rounded off to two decimal points.
Do not enter $ or comma in the answer box. For example, if your
answer is $12.345 then enter as 12.35 in the answer box.
A stock is expected to pay a dividend of $1.06 at the end of the year....
A stock is expected to pay a dividend of $1.06 at the end of the
year. The dividend is expected to grow at a constant rate of 7.7%.
The required rate of return is 10.3%. What is the stock's current
price?
Note: Enter your answer rounded off to two decimal points.
Do not enter $ or comma in the answer box. For example, if your
answer is $12.345 then enter as 12.35 in the answer box.
A stock is expected to pay a dividend of $1.25 at the end of the year...
A stock is expected to pay a dividend of $1.25 at the end of the
year (i.e., D1 = $1.25), and it should continue to grow
at a constant rate of 7% a year. If its required return is 12%,
what is the stock's expected price 5 years from today? Do not round
intermediate calculations. Round your answer to the nearest
cent.
A stock is expected to pay a year-end dividend of $8 and then to sell at...
A stock is expected to pay a year-end dividend of $8 and then to
sell at a price of $109. The risk-free interest rate is 4%, the
expected market return is 12% and the stock has a beta of 0.8. What
is the stock price today?
Multiple Choice
$102.99.
$98.73.
$105.98.
$109.00.
Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2, a dividend...
Lifecycle Motorcycle Company is expected to pay a dividend in
year 1 of $2, a dividend in year 2 of $3, and a dividend in year 3
of $4. After year 3, dividends are expected to grow at the rate of
7% per year. An appropriate required return for the stock is 12%.
Using the multistage DDM, the stock should be worth __________
today.
$85.60
$65.13
$63.80
$67.95
Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2, a dividend...
Lifecycle Motorcycle Company is expected to pay a dividend in
year 1 of $2, a dividend in year 2 of $3, and a dividend in year 3
of $4. After year 3, dividends are expected to grow at the rate of
7% per year. An appropriate required return for the stock is 12%.
Using the multistage DDM, the stock should be worth __________
today.
A stock is expected to pay a dividend of $1 per share in two months and...
A stock is expected to pay a dividend of $1 per share in two
months and in five months. The stock price is $50, and the
risk-free rate of interest is 8% per annum with continuous
compounding for all maturities. An investor has just taken a short
position in a six-month forward contract on the stock.
Required
What are the forward price and the initial value of the forward
contract?
Three months later, the price of the stock is $48...
A stock is expected to pay a dividend of $10 in one year. Its future annual...
A stock is expected to pay a dividend of $10 in one year. Its
future annual dividends are expected to grow by 20% pa. The next
dividend of $10 will be in one year, and the year after that the
dividend will be $12 (=10*(1+0.2)^1), and a year later $14.4
(=10*(1+0.2)^2) and so on forever. Its required total return is 50%
pa. The total required return and growth rate of dividends are
given as effective annual rates. Calculate the payback...
A stock is expected to pay a dividend of $10 in one year. Its future annual...
A stock is expected to pay a dividend of $10 in
one year. Its future annual dividends are expected to grow by
20% pa. The next dividend of $10 will be in one
year, and the year after that the dividend will be $12
(=10*(1+0.2)^1), and a year later $14.4 (=10*(1+0.2)^2) and so on
forever.
Its required total return is 50% pa. The total
required return and growth rate of dividends are given as effective
annual rates.
Calculate the payback...
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