Corporate Finance Assignment/ Professional Essay Writers
Estimate the annual required rate of return for BTO stock, using the Dividend Discount Model. BTO just paid an annual dividend of $9.93 per share, and the consensus analyst estimate is that the dividend will grow at 6.7% each year. The current market value of BTO stock is $212.33 per share. Answer as a % too 2 decimal places (e.g., 12.34% as 12.34).
2. Use the Dividend Discount Model to compute the expected price of a stock in 3 years. Each share is expected to pay a dividend of $6.24 in one year. Investors’ annual required rate of return is 21.7%, and the expected growth rate of the dividend is 5.3% per annum. Answer to the nearest penny.
3. Based on its perceived riskiness, the annual required rate of return is 11.5% for shares of Cyberdyne Inc. The company just paid its annual dividend of $4.23 a share. Analysts predict that the dividend will grow at an annual rate of 4.6%. What is the estimated price of the stock in 6 years, using the Dividend Discount Model? Answer to the nearest penny.
4. Use the Dividend Discount Model to determine the expected annual growth rate of the dividend for ELO stock. The firm is expected to pay an annual dividend of $3.75 per share in one year. ELO shares are currently trading for $66.37 on the NYSE, and the expected annual rate of return for ELO shares is 10.21%. Answer as a % too 2 decimal places
5. CCR stock is currently trading for $103.19 per share. The firm is expected to pay a dividend of $9.06 per share in one year and to increase the dividend at 5.9% each year thereafter. Based on the Dividend Discount Model, what the annual required rate of return for CCR stock? Answer as a % too 2 decimal places. Get Finance Help Today