1. The next payment of dividends by PT. Nusantara will cost $15 per share. Dividends are expected to maintain a growth rate of 6.25% forever. The stock is currently selling for $100 per share. Find the required return.

2. Every beginning of the year, Studio Ghibli pays dividends to its shareholders. Next year (2021) they will give 2 for each share, and in 2022 they will give $2.5 for each share. The required return for this venture is 30%. How much is Tabi's share price now (2020)?

3.pt. Red, Pt. Blue and Pt. White will each pay a $10 dividend next year. The dividend growth rate of the three companies is 2.5%. The required return for each company's stock is 6%, 9%, and 12%, respectively. What is the share price of each company? What do you conclude about the relationship between the required return and the stock price?

4. A new company, PT. WWCD will not pay dividends on the shares for the next 5 years, the company will use its profits to fuel its growth. The company will pay a dividend of $8 per share in 6 years and will increase the dividend by 2.5% per year thereafter. The required return on shares is 15%. Find the current price of the stock.

5. Netflix just paid a dividend of 2.7 per share. Dividends are expected to grow at 5.5% over the next 5 years and then at a growth rate of 7.5% over the following years. If the required return is 15%, find the share price today

6. The price of PT's stock is shown below. Nestle from today's newspaper. What was the closing price of this stock that appeared in yesterday's paper? If the company currently has 25 million shares outstanding, what was the net income for the most recent four quarters?

Answer rating: 100% (QA)

1 To find the required return for PT Nusantaras stock we can use the dividend discount model DDM The DDM formula is Required Return Dividend Stock Price Dividend Growth Rate Given Dividend 15 Stock Pr... View the full answer