this stock today if your required return is 7.5 percent? A. $32.26 B.535.48 C.$7

Question

this stock today if your required return is 7.5 percent? A. $32.26 B.535.48 C.$7268 D. $100.00 E. $107.30 the next dividend payment by Hillside Markets will be $2.35 per share. The dividends are anticipated to maintain a 4.5 percent growth rate forever. The stock currenely sells for 565 per share. What is the dividend yield? A. 3.20 percent B. 3.62 percent C. 3.81 percent D. 4.50 percen E4.81 parcent M 18. The Stiller Corporation will pay a $3.80 per share dividend next year. The company pledges to increase its dividend by 2.4 peroent indefinisely. How much are you willing to pay to purchase this company's stock today if you require a 6.9 percent return on your investment? A. 555.07 B. 563.09 C $72.22 D $78.47 E. $84.44 made two announcements concerning its common stock today. First, the company announced that the next annual dividend will be s1.75 a share. Secondly, all dividends after that will decrease by 1.5 percent annually. What is the maximum amount you should pay to purchase a share of this stock today if you require a 14 percent rate of return? A. $11.29 B. $12.64 C. $13.27 D. $14.00 E. $14.21 M 20. Whistle Stop Trains pays a constant $16 dividend on its stock. The company will maintain this dividend for the next 14 years and will then cease paying dividends forever. What is the current price per share if the required return on this stock is 15 percent? A $77.78 B. 582.48 C. $91.59 D. $106.67 E S11200 ag

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Q16 Annual Dividend                      7.50 required return 7.50% Maximum price = 7.50/7.50%                  100.00 Q17 Next Dividemd                      2.35 Current price                    65.00 Dividend Yield = 2.35/65 3.62% Q18   P0 = D1/(ke-g) P0 = 3.80/(6.9% - 2.4%) P0 = 3.80/(4.5%) P0 = $84.44 Q19 P0 =D1/(ke-g) P0 = 1.75/(14% - -1.5%) P0 = 1.75/(15.5%) P0 = $11.29 Q20 Annual Dividend                    16.00 PVF for 14 Years at 15%                  5.7245 Current Price per share                    91.59 Time PVF                                                                        1.00                  0.8696                                                                        2.00                  0.7561                                                                        3.00                  0.6575                                                                        4.00                  0.5718                                                                        5.00                  0.4972                                                                        6.00                  0.4323                                                                        7.00                  0.3759                                                                        8.00                  0.3269                                                                        9.00                  0.2843                                                                      10.00                  0.2472                                                                      11.00                  0.2149                                                                      12.00                  0.1869                                                                      13.00                  0.1625                                                                      14.00                  0.1413 PVF for 15 Years                  5.7245

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