Assignment - Stocks 1. 2. a. 3. Flare Stock will pay the dividend of $2.4 this year. Its dividend yield is 10%. At what price is the stock selling? An oil company has issued preferred stock with $10 annual dividend that will be paid in perpetuity. If the discount rate is 14%. What price must the stock sale? Integrated Potato chips paid a $2 per share dividend yesterday. It is expected to grow steadily at the rate of 4% per year. What is expected dividend in each of next 3 years? If the discount rate of the stock is 12%. At what price will the stock sell if the forecasted price at the end of third year is $20? What is the expected price after 3 years if today it is selling for $15? A company paid dividend $12. Company is expected to grow the dividend at 10% per year for next 3 years and then at 6% per year forever. What is the price of stock at the end of third year if your discount rate is 14%? b. C. 4