1. What is the estimated price of a stock with a dividend to be paid in 1 year of $3.33 and a growth rate of -6%? Assume the discount rate is 10.5%
$22.20
$20.18
$37.07
$33.33
$19.69
2. What is the price of a stock today if the most recent dividend (i.e. "D 0") was 2.50, the growth rate is 4.0%, and the required rate of return is 14.196%.
$26.00
$27.00
$26.50
$25.00
$25.50
3. What is the estimated price of a stock going to be in 3 years if the most recent dividend paid was $1.00, the growth rate of dividends is estimated at 5.0% and the discount rate for the stock is 11.2%?
$18.70
$19.60
Not enough information
$17.85
$10.51