1.) Whatis the price of a stock today if the most recent dividend was 2.50, thegrowth rate is 4.0%, and the required rate of return is 15%.
2.) Whatis the estimated price of a stock going to be in 4 years if the most recentdividend paid was $1.00, the growth rate of dividends is estimated at 3.0% andthe discount rate for the stock is 10.0%?
3.) Thereis a stock that just paid a dividend of $5.50 per share. The dividend isexpected to grow at a rate of 30% per year for 5 years, and then grow at a rateof 5% per year thereafter. If the required rate of return for the stockis 16%, what is the estimated price of the stock TODAY?
4.) Whatis the dividend yield on a stock that pays a dividend of $1.45 next year andhas an expected return of 13% along with a growth rate of 4%?
5.) Whatshould the price of a preferred stock be if it pays a dividend of $2.45 peryear and has a required rate of return of 11.9%? Your answer should be to2 decimal places. Don’t include a “$” sign in your answer.
