Question: plese show the culcolate method for 1,2 Q and explain for 3 Q 1What is the value of a stock if the current dividend is
plese show the culcolate method for 1,2 Q and explain for 3 Q
1What is the value of a stock if the current dividend is $2, the growth rate is 5%, and the required return is 10%?
| $40
| ||
| $22
| ||
| $26
| ||
| $42 |
2What is the value of a stock that you believe will sell in three years for $81 a share and will pay $3.00 in dividends every year for the three-year period assuming your required return is 10%?
| $68.32
| ||
| $90.00
| ||
| $81.37
| ||
| $91.25 |
3The recommended model to estimate the cost of common equity for a firm is
| A one-stage constant growth model.
| ||
| A multistage growth model.
| ||
| The CAPM.
| ||
| Zero growth model |
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