Which the the adhering to statements is correct? a. The continuous growth version takes into consideration the funding gains deserve on a stock. B. The is proper to usage the constant growth model to calculation stock value also if the development rate is never ever expected to end up being constant. C. 2 firms with the very same expected divided and growth rate must additionally have the same stock price. D. If a stock has actually a required rate of return rs= 12%, and if that is dividend is intended to prosper at a consistent rate the 5%, this implies that the stock"s dividend yield is additionally 5%. E. The price that a stock is the present value that all expected future dividends, discounted at the dividend development rate.

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If a stock"s dividend is supposed to prosper at a continuous rate the 5% a year, i beg your pardon of the complying with statements is correct? a. The expected return on the share is 5% a year. B. The stock"s dividend yield is 5%. C. The stock"s price one year from now is intended to be 5% higher. D. The stock"s required return need to be equal to or much less than 5%. E. The price the the stock is supposed to decline in the future.

Stock X and also Stock Y sell at the very same price. Share X has actually a compelled return of 12%. Stock Y has a compelled return the 10%. Stock X"s dividend is intended to thrive at a continuous rate of 6% a year, while stock Y"s dividend is expected to thrive at a continuous rate the 4%. Assume that the sector is in equilibrium and expected returns equal forced returns. I beg your pardon of the following statements is correct? a. Stock X has a higher dividend yield than Stock Y. B. Share Y has actually a higher dividend yield than Stock X. C. One year indigenous now, share X"s price is supposed to be higher than share Y"s price. D. Stock Y has actually a greater capital gains yield. E. Stock X has the greater expected year-end dividend.

Stock X is meant to pay a dividend the $3.00 in ~ the end of the year (that is, D1= $3.00). The dividend is intended to prosper at a consistent rate that 6% a year. The stock currently trades at a price of $50 a share. Assume the the stock is in equilibrium, that is, the stock"s price equals its intrinsic value. I beg your pardon of the adhering to statements is not CORRECT? a. The stock"s forced return is 12%. B. The stock"s expected price 10 year from currently is $89.54. C. The stock"s expected dividend yield is 6%. D. The stock"s expected funding gains yield is 6%. E. The stock"s supposed dividend in ~ the finish of Year 2 is $3.12.

Stock X has compelled return the 12% and also a dividend productivity of 5%, and also its dividend is expected to grow at a consistent rate forever. Stock Y has actually a required return the 10%, a dividend yield of 3%, and also its dividend is supposed to prosper at a constant rate forever. Both stocks at this time sell because that $25 per share. I m sorry of the complying with statements is CORRECT? a. Share X pays a higher dividend per share 보다 Stock Y. B. Share Y payment a greater dividend per share 보다 Stock X. D. Share Y has a lower expected development rate than Stock X. E. Stock Y has the greater expected capital gains yield.

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A share is intended to pay a year-end dividend that $2.00 a share (D1 = $2.00). The dividend is intended to in ~ a price of autumn 5% a year forever (g=-5%). The company"s expected and also required price of return is 15%. I beg your pardon of the complying with statements is CORRECT? a. The company"s share price is $20. B. The company"s dividend productivity 5 year from currently is meant to it is in 10%. C. The company"s stock price following year is supposed to it is in $9.50. D. The company"s expected funding gains productivity is 5%. E. The consistent growth model cannot be used due to the fact that the development rate is negative.

Womack Toy Company"s stock is at this time trading in ~ $25 per share. The stock"s dividend is projected to rise at a continuous rate the 7% every year. The required rate that return on the stock, rs, is 10%. What is the intended price of the stock 4 years from today? a. $36.60 b. $34.15 c. $28.39 d. $32.77 e. $30.63

Allegheny Publishing"s share is expected to pay a year-end dividend, D1, the $4.00. The dividend is meant to prosper at a continuous rate the 8% every year, and the stock"s required rate of return is 12%. Given this information, what is the meant price of the stock, eight year from now? a. $200.00 b. $185.09 c. $171.38 d. $247.60 e. $136.86

A stock through a required rate of return of 10% sells because that $30 every share. The stock"s dividend is supposed to flourish at a constant rate of 7% per year. What is supposed year-end dividend, D1 on the stock? a. $0.87 b. $0.95 c. $ 1.09 d. $0.90 e. $1.05

A share is expected to have a dividend every share the $.60 in ~ the end of the year (D1=.60). The dividend is expected to prosper at a consistent rate that 7% per year, and the stock has actually a compelled return that 12%. What is the meant price the the stock 5 years from today? (That is, what is Ps?) a. $12.02 b. $15.11 c. $15.73 d. $16.83 e. $21.15

An analyst is estimating the intrinsic value Harkleroad Technologies" stock. Harkleroad"s complimentary cash flow is meant to it is in $25 million this year, and also grow in ~ a continuous rate of 7% a year. The company"s WACC is 10%. Harkleroad has $200 million of long-term debt and also preferred stock, and also 30 million impressive shares of common stock. What is the approximated per-share price the Harkleroad Technologies" common stock? a. $1.67 b. $5.24 c. 18.37 d. $21.11 e. $27.78

Yore Technology"s share is expected to salary a year-end dividend the $2.00. The stock at this time has a price of $40 a share, and the stock"s dividend is meant to flourish at a consistent rate that g% a year. The required return top top the stock is 13.4 percent. What is the supposed price the Yohe"s stock 5 years from today? a. $51.05 b. $55.23 c. $59.87 d. $64.90 e. $66.15

Motor homes Inc. (MHI) is presently in a phase of abnormally high growth due to the fact that of a surge in the demand for motor homes. The agency expects earnings and also dividends to prosper at a rate of 20% because that the next 4 years, after which time there will be no expansion (g=0) in earnings and dividends. The company"s last dividend to be $1.50. The compelled return (rs) top top the stock is 18 percent. What should be the current common stock price? a. $15.17 b. $17.28 c. $22.21 d. $19.10 e. $24.66

R.E. Lee Inc. Is a young firm that is expecting development of 40% for the following three years and then a continuous 15%, thereafter. The most recent dividend (Do) was $0.75. The compelled return top top the share is 17 percent. What is the present price of Lee"s stock? a. $77.14 b. $75.17 c. $67.51 d. $73.88 e. $93.20

Your company just payment a dividend of $2.00. The dividend growth rate is supposed to be 4% for 1 year, 5% the next year, climate 6% because that the complying with year, and also a constant 7% thereafter. The stock"s required return (rs) is 10%. What is the present stock price? a. $53.45 b. $60.98 c. $64.49 d. $67.47 e. $69.21

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