1- Company x is expected to pay a year-end dividend of $5 a share on i
1- Company x is expected to pay a year-end dividend of $5 a share on its common stock. After the dividend payment the stock is expected to sell $110 per share. The required rate of return on the common stock 15%. Then, calculate current price of the stock. Also calculate the dividend yield and capital gains yield for the stock.2-A share of common stock has an expected long-run constant dividend growth rate of 7% and the most recent dividend D0 was $5.00. the required rate of return on the common stock is 18%. then using the dividend growth model calculate the current price of the stock.3-A share of common stock has an expected long-run constant dividend growth rate of 6% and the most recent dividend D0 was $5.00. the stock currently selling for $50 per share. calculate required the rate of return on the stock. Also calculate the dividend yield and capital gains yield for the stock.4-If the dividends on a preferred stock is $9 per year and the required rate of return is 12%. Calculate the current price of the preferred stock.5-For the stock A, the cash dividend expected one year from now is $9 [D1]. The dividends are expected to grow at a constant rate of 6% per year for ever. The required rate of return on the common stock is 15%. Calculate the current price of the stock using the dividend growth model.
