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Author Question: ABC Company has been growing at a 10% rate, and it just paid a dividend of Do= $3.00. Due to a new ... (Read 47 times)

sam.t96

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  • Posts: 570
on: Apr 25, 2021

Question 1

A stock just paid a dividend of $1.15, has a required rate of return of 17%, and a constant dividend growth rate of 3%. What price should this stock be selling for?
◦ $17.08
◦ $8.21
◦ $8.46
◦ $1.22
◦ $6.05

Question 2

ABC Company has been growing at a 10% rate, and it just paid a dividend of Do= $3.00. Due to a new product, ABC expects to achieve a dramatic increase in its short-run growth rate, to 20% annually for the next 2 years. After this time growth is expected to return to the long-run constant rate of 10%. The company's beta is 2.0, the required return on an average stock is 11%, and the risk free rate is 7%. What should the dividend yield (D1/Po) be today? (Round to the nearest whole percent.)
◦ 4%
◦ 5%
◦ 10%
◦ 8%
◦ 2%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by sam.t96 on Apr 25, 2021

pratush dev

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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sam.t96

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

pratush dev

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Reply 3 on: Yesterday
Gracias!

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