1. stock x just paid a dividend of $5.80. if you require a 15% return on equity, and if you expect dividends to grow indefinitely at 2.5% per year, what is the most that you will pay for stock x?

2. stock y just paid a dividend of $4.20. if the stock sells for $100, and if you expect the stock to grow at 3% per year indefinitely, what is your required rate of return on equity?

3. you expect stock a to pay a dividend of $5. if the stock sells for $60, and if you require a 12% return on equity, what is the expected dividend growth rate?

4.stock b sells for $300. you expect its dividends to grow at 4% indefinitely, and you require an 11% return on your equity investment. what was the most recent dividend?

Answer rating: 100% (QA)

Lets calculate the values for each of the given scenarios 1 To find the most you will pay for stock ... View the full answer