Question

**Question 2: What is the current stock price of Slack
Inc.that will pay its first yearly dividends of $3.00 in year 5,
which will then grow for another 30 years at 8% per year, after
which it will grow at 4% forever? The required rate of return on
the stock is 13%.**

A. 32.41

B.32.59

C. 627.65

D. 83.48

E. 53.62

Answer #1

Thus the answer will be B)

Question 1
Alphabet Inc. will not pay it's first dividend until ten years
from now. The first dividend received in 10 years (Year 10) is
expected to be $120. Dividends are expected to grow at 4% forever
after this first dividend payment. The required rate of return for
similar stocks is 15%. What is the current value of Alphabet, Inc.
stock?
Question 2
Snoke Inc's will pay a dividend of $10 next year. The required
rate of return is 10%...

Using the following information to evaluate a stock
price.
A stock just paid its dividend of $2.00 and its required return is
13%.
Assume g is non-constant, the growth rate is 30% for Year 0 to
Year 1, 25% for Year 1 to Year 2, 15% for Year 2 to Year 3, and
then long-run constant g = 6%, what is the stock price?
Assume that the dividends are growing at 10% for the first two
years and then...

New Gadgets, Inc., currently pays no dividend but is expected to
pay its first annual dividend of $5.40 per share exactly 5 years
from today. After that, the dividends are expected to grow at 3.7
percent forever. If the required return is 12.3 percent, what is
the price of the stock today?

3. Grizzlies Inc. expects to pay $3.00 dividend on its common
stock at the end of the year. The dividend is expected to grow 25%
a year for the first two years, after which the dividend is
expected to grow at a constant rate of 5% a year indefinitely. The
stock’s beta is 1.2, the risk-free rate of interest is 6%, and the
rate of return on the market portfolio is 11%. What is the
company’s current stock price?

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...

Using the following information to evaluate a stock
price.
A stock just paid its dividend of $2.00 and its required return is
13%.
If the growth rate g = 0%, in other words, the dividend is
constant at $2.00, what is the stock price? 837
What if g is constant and is 6%? 33.3333
What is the dividend yield and what is the capital gains yield
for b?
Assume g is non-constant, the growth rate is 30% for Year 0...

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...

A stock is expected to pay the following dividends: $2.2
two years from now, and $3.3 three years from
now, followed by growth in the dividend of 4% per year forever
after that point. There will be no dividends prior to year 2. The
stock's required return is 13%. The stock's current price (Price at
year 0) should be $____________.

A stock is expected to pay the following dividends: $2.2 two
years from now, and $3.3 three years from now, followed by growth
in the dividend of 4% per year forever after that point. There will
be no dividends prior to year 2. The stock's required return is
13%. The stock's current price (Price at year 0) should be
$___________

A stock is expected to pay the following dividends: $1.3 in 1
year, $1.6 in 2 years, and $2 in 3 years, followed by growth in the
dividend of 6% per year forever after that point. The stock's
required return is 11%. The stock's current price (Price at year 0)
should be $____________.

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