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Question 1 A) XYZ stock currently sells for $50 per share. The next expected annual dividend is $2, and the growth rate

Posted: Sun Jul 03, 2022 1:07 pm
by answerhappygod
Question 1 A Xyz Stock Currently Sells For 50 Per Share The Next Expected Annual Dividend Is 2 And The Growth Rate 1
Question 1 A Xyz Stock Currently Sells For 50 Per Share The Next Expected Annual Dividend Is 2 And The Growth Rate 1 (46.75 KiB) Viewed 12 times
Hi there, can you please answer these parts showing the stepstaken in a clear way. Will give upvote. Thanks :D
Question 1 A) XYZ stock currently sells for $50 per share. The next expected annual dividend is $2, and the growth rate is 6%. What is the expected rate of return on this stock? If the required rate of return on this stock were 12%, what would the stock price be? B) Upstairs and Downstairs, Ltd will pay a $3.60 per share dividend next year. The company pledges to increase its dividends by 4.5%per year indefinitely. If you require an 11%return on your investment, how much will you pay for the company's stock today? C) Ayden, Ltd. has an issue of preferred stock outstanding that pays a $6.50 dividend every year in perpetuity. If the required return on the share is 12%, what is the current price of the share? D) Jen's Fashions is growing quickly. Dividends are expected to grow at a 22%rate for the next 3 years, with the growth rate falling off to a constant 8%thereafter. The required return is 12%and the company just paid a $3.80 annual dividend. What is the current share price? E) Bioberg Ltd just paid a dividend of $4.17. The company plans to increase future dividends by 7.01%per year. Required-If the current price of the share is $43.73, what is the required rate of return on this share?