What is the price of a preferred stock that will pay a $20 dividend per year starting 20 years from today, given a required return of 6.8 percent? Your numbers will vary.
Your numbers will vary.
Determine the stock price given two different rates of return.
Your numbers will vary.
What stock price would you consider appropriate based on the earnings and benchmark PE ratio of Flower Co.? What if the benchmark PE were different? Using the benchmark PE to determine the stock prices for Flower Co.
Your numbers will vary.
Given a new company with negative earnings, sales, and number of shares outstanding, and a benchmark price-sales ratio, estimate an appropriate stock price. What happens if the benchmark price-sales ratio changes? Determine the stock price for the firm using the price-sales ratio of a benchmark.
Your numbers will vary.
A young startup company, Metallica Bearings, Inc., will not pay dividends for the next nine years to fuel growth. In ten years, the company will pay a dividend of $14 per share and increase it by a constant rate. If the required return on the stock is 11.5 percent, what is the current share price? (Your numbers will vary). Determine the current share price for Metallica Bearings Inc given that it won’t be paying dividends in the immediate future and then start paying dividends later on.
Your numbers will vary.
How much will you pay for a share of Premier, Inc., given that the company has just paid a dividend of $3.75 per share, will increase the dividend by $5 per share for the next four years, and then never pay another dividend, if your required return on the company’s stock is 11 percent? (Your numbers will vary). Determine the current share price for the firm given that the company announced that the firm will increase dividends and then never pay another dividend.
Your numbers will vary.
A corporation is expected to pay a series of dividends over the next few years, and then maintain a constant growth rate in dividends in the future. If the required return on the stock is known, what is the current share price? Determine the share price given dividends for the next couple years and then a constant growth rate forever after that.
Your numbers will vary.
Given the expected growth rate of dividends for the next three years and a constant rate thereafter, along with the required return and the recent dividend payment, what is the current share price. Determine the share price given an initial high growth rate followed by a constant growth rate thereafter.
Your numbers will vary.
What is the current share price of Antiques R Us stock, given a recent dividend payment of $12.40 and a reduction in payout of 4 percent per year, with a required return of 9.5 percent on the stock? (Your numbers will vary). Determine the share price if the firm expects to reduce its payout by a fixed percentage per year.
Your numbers will vary.
Determine the most recent, current dividend per share for the firm, given the stock price, growth, and required return.
Your numbers will vary.