Finding sorenson-s expected stock price


1) XYZ’s last dividend paid was= $1.1, its required return is= 12.4%, its growth rate is= 3.6%, and its growth rate is expected to be constant in = future. Find out Sorenson's expected stock price in 7 years, i.e., what is P7?

2) XYZ 's last dividend was= $3.2. Dividend growth rate is expected to be constant at= 20% for three years, after which dividends are expected to grow at the rate of= 6% forever. If firm's required return (rs) is= 12%, determine its present stock price (i.e. solve for Po)?

3) A stock's next dividend is expected to be= $1.7. Required rate of return on stock is= 16.8%, and expected constant growth rate is= 7.1%. Determine the stock's present price?

4) XYZ Enterprises' stock is expected to pay dividend of $1.9 per share. Dividend is projected to increase at the constant rate of= 8.9% per year. Required rate of return on stock is= 15.6%. What is the stock's expected price three years from today?

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Finance Basics: Finding sorenson-s expected stock price
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