Q Corp is currently selling for $35 per share.Its dividends have been growing at a constant 2.1% per year.Next year it expects to pay a dividend of $2.45.What is its expected return (discount rate)?

Xytex Products just paid a dividend of $2.50 per share, and the stock currently sells for $20. If the discount rate is 16 percent, what is the dividend growth rate?

Suppose Could I Industries expects to grow erratically over the next 4 years.It omitted its dividend this year (year 0) and plans to do so again in year 1.After that, it plans to pay dividends of 0.50, 1.50, and 2.75 in years 2, 3 and 4, respectively.Beginning in year 5 it expects its dividends to grow 2.3 percent per year into perpetuity.Because of this erratic growth, investors are demanding a return of 11%.

What is the intrinsic value of the stock today? 

 

Answer rating: 100% (QA)

Answer 1 Q Corp expected return discount rate Given that Q Corps dividends are growing at a constant ... View the full answer