Question

A stock will pay dividends of $1.20 starting in YR4. The dividends for YR5, YR6, and YR7 will grow by 25%, 20%, and 12%. Finally, the dividends will grow at a constant rate of 6% forever. The required return on the stock is 11%. P3, the price of the stock 3 years from now, should be $_______.

* DO NOT ROUND INTERMEDIATE VALUES, NO CREDIT WILL BE GIVEN

* FINAL ANSWER IN DOLLARS, ROUNDED TO TWO DECIMAL PLACES

Answer #1

A stock will pay no dividends for the next 3 years. Four years
from now, the stock is expected to pay its first dividend in the
amount of $2.2. It is expected to pay a dividend of $2.7 exactly
five years from now. The dividend is expected to grow at a rate of
6% per year forever after that point. The required return on the
stock is 13%. The stock's estimated price per share exactly TWO
years from now, P2...

Briley, Inc., is expected to pay equal dividends at the end of
each of the next two years. Thereafter, the dividend will grow at a
constant annual rate of 4.5 percent, forever. The current stock
price is $50.
What is next year’s dividend payment if the required rate of
return is 12 percent? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)

Newkirk, Inc., is
expected to pay equal dividends at the end of each of the next two
years. Thereafter, the dividend will grow at a constant annual rate
of 5.9 percent, forever. The current stock price is $64.
What is next year’s
dividend payment if the required rate of return is 12 percent?
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)

Newkirk, Inc., is expected to pay equal dividends at the end of
each of the next two years. Thereafter, the dividend will grow at a
constant annual rate of 4.1 percent, forever. The current stock
price is $46. What is next year’s dividend payment if the required
rate of return is 12 percent? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
dividend payment=

Chamberlain Corporation is expected to pay the following
dividends over the next four years: $12.20, $8.20, $7.20, and
$2.70. Afterward, the company pledges to maintain a constant 5%
growth rate in dividends forever. If the required return on the
stock is 12%, what is the current share price? (Do not round
intermediate calculations. Round the final answer to 2 decimal
places. Omit $ sign in your response.)

Chamberlain Corporation is expected to pay the following
dividends over the next four years: $12.50, $8.50, $7.50, and
$3.00. Afterward, the company pledges to maintain a constant 4%
growth rate in dividends forever. If the required return on the
stock is 12%, what is the current share price? (Do not round
intermediate calculations. Round the final answer to 2 decimal
places. Omit $ sign in your response.)
Current share price $

A stock is expected to pay the following dividends: $1.3
four years from now, $1.5 five years from now,
and $2 six years from now, followed by growth in the
dividend of 7% per year forever after that point. There will be no
dividends prior to year 4. The stock's required return is 13%. The
stock's current price (Price at year 0) should be
$____________.
Be specific about the process, especially on how to calculate
PV. Do not round any...

A stock is expected to pay the following dividends: $1
four years from now, $1.5 five years from now,
and $1.8 six years from now, followed by growth in the
dividend of 8% per year forever after that point. There will be no
dividends prior to year 4. The stock's required return is 13%. The
stock's current price (Price at year 0) should be
$____________.
Do not round any intermediate work, but round your
final answer to 2 decimal places...

A stock will pay no dividends for the next 3 years. Four years
from now, the stock is expected to pay its first dividend in the
amount of $1.9. It is expected to pay a dividend of $3 exactly five
years from now. The dividend is expected to grow at a rate of 7%
per year forever after that point. The required return on the stock
is 15%. The stock's estimated price per share exactly TWO years
from now, P2...

(a) What is the value of a stock expected to pay a constant
$3.50 dividend each year forever if the market required rate of
return is 18%?
(b) What is the estimated value of a stock, which intends to pay
the dividend of $2.50 five years from now (at the end of year 5),
expects dividends to grow at 10 percent? The Beta of this stock is
1.5. The yield on a 10-year government bonds is 3% the long-term
return...

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