1nbspif d1nbsp 256 and p0nbsp 3282 what is the dividend

Question

1. If D₁ = $2.56 and P₀ = $32.82, what is the dividend yield?

2. If D₁ = $7.5, g (which is constant) = 5.8%, and P₀ = $61.7, what is the required rate of return on the stock? That is, solve for r.

3.  A stock just paid a dividend of D₀ = $1.  The required rate of return is r_s = 17.6%, and the constant growth rate is g = 3.7%.  What is the current stock price?

4. ABC just paid a dividend of D₀ = $4.1.  Analysts expect the company's dividend to grow by 31% this year, by 21% in Year 2, and at a constant rate of 6% in Year 3 and thereafter.  The required return on this stock is 11%.  What is the best estimate of the stock's current market value?

5. A stock is expected to pay a dividend of $1.6 at the end of the year.  The required rate of return is r_s = 18.3%, and the expected constant growth rate is g = 7.7%.  What is the stock's current price?

6. ABC Company's last dividend was $0.8.  The dividend growth rate is expected to be constant at 34% for 2 years, after which dividends are expected to grow at a rate of 5% forever.  The firm's required return (r_s) is 13%.  What is its current stock price (i.e. solve for Po)?