What is the price of the following stock today (Po) assuming the following? -Current Dividend =...

 

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What is the price of the following stock today (Po) assuming the following? -Current Dividend = $3 -Dividend growth in one year = 10% -Dividend growth in two years = 9% -Constant dividend growth thereafter = 3% -Required return = 6% What is the required return of the following stock? JKL's stock is currently selling for $28. The company expects to pay a $2 dividend next year which will then grow at 4% per year. XYZ Corp. has earnings of $2.60 per share. The benchmark Price-Earnings ratio for the company is 19. What stock price would you consider appropriate? What is the price of the following stock today (Po) assuming the following? -Current Dividend = $3 -Dividend growth in one year = 10% -Dividend growth in two years = 9% -Constant dividend growth thereafter = 3% -Required return = 6% What is the required return of the following stock? JKL's stock is currently selling for $28. The company expects to pay a $2 dividend next year which will then grow at 4% per year. XYZ Corp. has earnings of $2.60 per share. The benchmark Price-Earnings ratio for the company is 19. What stock price would you consider appropriate?

Answer rating: 100% (QA)

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