Question: how to do this on excel is expected to pay an year-end dividend of s5 a share on its common stock. After the dividend payment
is expected to pay an year-end dividend of s5 a share on its common stock. After the dividend payment the stock is expected to sell at $110 per share. The required rate of return on the common stock is 15%. Then, calculate the current price of the stock. 7. A share of common stock has an expected long-run constant dividend growth rate of 7%, and the most recent dividend Do. was $5.00. The required rate of return on the common stock is 18%. Then, using the dividend growth model, calculate the current price of the stock. 8. A share of common stock has an expected long-run constant dividend growth rate of 6%, and the most recent dividend Do, was $5.00. The stock is currently selling for $50 per share. Calculate the required rate of return on the stock. Also calculate the dividend yield and capital gains yield for the stock 9. If the dividends on a preferred stock is $9 per year, and the required rate of return on the stock is 12%, then calculate the current price of the preferred stock 10. For Stock A, the cash dividend expected one year from now is $9 [D). The dividends are expected to grow at a constant rate of 6% per year for ever. The required rate of return on the common stock is 15%. Then calculate the current price of the stock using the dividend growth model
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