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?
The rate of return on the stock is dependent on the public's appraisal of the current economic situation and of the company. However, on the long term it is dependent on the management's efforts.
70 percent dividend income exclusion on the tax returns of corporations. That is, if a corporation owns preferred stock, it can exclude 70 percent of dividend income and pay income taxes on only 30 percent of dividend income, both preferred and common stock.
Stock price = div/K-gStock price = 1/6%-2%Stock price = 25Div = DividendK = rate of returng = growth rate
To answer this question, the appropriate formula is the discounted dividend model without growth which is presented as follows: P = DIV / r where P = price of the stock DIV = the amount of the annual dividend r = the required rate of return Using the above formula: V = $6.50 / 6.5% = $6.50 / 0.065 = $100 The price of the stock would be approximately $100 using the discounted dividend model.
Yield
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?
tomato 6.33
The rate of return on the stock is dependent on the public's appraisal of the current economic situation and of the company. However, on the long term it is dependent on the management's efforts.
4%
$3.00
no
Data: current dividend= 1 Growth = 4% time period= 3 years solution dividend for first year= 1*(1+0.04) Expected Dividend for first year= 1.04 dividend for second year= 1.04(1+0.04) Expected dividend for the second year =1.082 dividend for third year= 1.082(1+0.04) Expected Dividend for Third Year = 1.124
11.04 12.40 13.76 15.00 9.42
the current price is $ . The price will be $ in 3 years and $ in 15 years
Year one 1.04, two 1.044, three 1.052
70 percent dividend income exclusion on the tax returns of corporations. That is, if a corporation owns preferred stock, it can exclude 70 percent of dividend income and pay income taxes on only 30 percent of dividend income, both preferred and common stock.
The dividend will be 1.50(1.07)=1.605 for Year 1 1.605(1.07)=1.717 for Year 2 1.717(1.07)=1.838 for Year 3 1.838(1.05)=1.929 for Year 4 1.929(1.05)=2.026 for Year 5