Determining expected year-end dividend


1) A stock now paid the dividend of= $3. Needed rate of return is= 16.5%, and constant growth rate is= 3.2%. Determine the present stock price?

2) XYZ just paid the dividend of D0 = $4.9. Analysts expect company's dividend to grow by= 30% this year, by= 22% in Year 2, and at the constant rate of= 5% in Year three and afterwards. The needed return on this stock is= 12%. What is the best estimation of stock’s present market value?

3) XYZ 's stock has needed rate of return of= 13%, and it sells for= $74 per share. Dividend is expected to grow at the constant rate of= 4.7% per year. Determine the expected year-end dividend, D1?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Determining expected year-end dividend
Reference No:- TGS014719

Expected delivery within 24 Hours