QUESTION 1:
If D1 = $4.26, g (which is constant) = 2%, and P0 = $67.54, what is the stock's expected dividend yield for the coming year?
QUESTION 2
ABC is expected to pay a dividend of $4.5 per share at the end of the year. The stock sells for $93 per share, and its required rate of return is 10.9%. The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (i.e. solve for g)?
QUESTION 3
ABC Inc., is expected to pay an annual dividend of $5.2 per share next year. The required return is 18 percent and the growth rate is 6.9 percent. What is the expected value of this stock five years from now?
QUESTION 4
The common stock of Connor, Inc., is selling for $31 a share and has a dividend yield of 2.2 percent. What is the dividend amount?
QUESTION 5
ABC's last dividend was $3.3. The dividend growth rate is expected to be constant at 25% for 3 years, after which dividends are expected to grow at a rate of 7% forever. If the firm's required return (rs) is 13%, what is its current stock price (i.e. solve for Po)?
QUESTION 6
If D1 = $3.2, g (which is constant) = 2.6%, and P0 = $60.1, what is the stock's expected total return for the coming year?
QUESTION 7
The common stock of Wetmore Industries is valued at $21.2 a share. The company increases their dividend by 6.2 percent annually and expects their next dividend to be $1.8. What is the required rate of return on this stock?
QUESTION 8
ABC Enterprises' stock is expected to pay a dividend of $1.8 per share. The dividend is projected to increase at a constant rate of 8.7% per year. The required rate of return on the stock is 19.5%. What is the stock's expected price 3 years from today (i.e. solve for P3)?
QUESTION 9
ABC Enterprises' stock is currently selling for $39 per share. The dividend is projected to increase at a constant rate of 3.7% per year. The required rate of return on the stock is 12%. What is the stock's expected price 5 years from today (i.e. solve for P5)?
QUESTION 10
A stock is expected to pay a dividend of $0.5 at the end of the year. The required rate of return is rs = 19.7%, and the expected constant growth rate is g = 6%. What is the stock's current price?
QUESTION 11
If last dividend = $4.8, g = 4.9%, and P0 = $77.8, what is the stock's expected total return for the coming year?
QUESTION 12
ABC's last dividend paid was $1.6, its required return is 19.3%, its growth rate is 3.6%, and its growth rate is expected to be constant in the future. What is Sorenson's expected stock price in 7 years, i.e., what is P7?
QUESTION 13
ABC's stock has a required rate of return of 19.8%, and it sells for $73 per share. The dividend is expected to grow at a constant rate of 5.4% per year. What is the expected year-end dividend, D1?
QUESTION 14
ABC Company's last dividend was $4. The dividend growth rate is expected to be constant at 17% for 2 years, after which dividends are expected to grow at a rate of 7% forever. The firm's required return (rs) is 16%. What is its current stock price (i.e. solve for Po)?
QUESTION 15
A stock just paid a dividend of D0 = $1.3. The required rate of return is rs = 13.9%, and the constant growth rate is g = 5.4%. What is the current stock price?
QUESTION 16
ABC just paid a dividend of D0 = $3.1. Analysts expect the company's dividend to grow by 33% this year, by 25% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this stock is 17%. What is the best estimate of the stock's current market value?