Current Price Future Price Stock Dividend Yield Cap Gains Yield Exp Rate of

Current price future price stock dividend yield cap

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25. Current Price - Future Price (Stock)
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Dividend Yield – Cap Gains Yield – Exp Rate of Return-2-2Preferred Products has issued preferred stock with an $5.90 annual dividend that will be paid in perpetuity.a.If the discount rate is 10%, at what price should the preferred sell? b.At what price should the stock sell 1 year from now? c.What is the dividend yield, the capital gains yield, and the expected rate of return of the stock? (Leave no cells blank - be certain to enter "0" wherever required.) 26. Exp Rate of Return (Stock)-2-2Waterworks has a dividend yield of 10.00%. If its dividend is expected to grow at a constant rate of 7.00%, what
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must be the expected rate of return on the company’s stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 27. Exp Rate of Return – Stock Price-2-2Steady As She Goes, Inc., will pay a year-end dividend of $3.20 per share. Investors expect the dividend to grow at a rate of 6% indefinitely.a.If the stock currently sells for $32 per share, what is the expected rate of return on the stock? (Do not round intermediate calculations.) b.If the expected rate of return on the stock is 18.5%, what is the stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Explanation: ) 28. Exp Dividend (Stock)-2-2Integrated Potato Chips paid a $1.40 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 5% per year.a.What is the expected dividend in each of the next 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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b.If the discount rate for the stock is 11%, at what price will the stock sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c.What is the expected stock price 3 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d.If you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.) Year 1 Year 2 Year 3 DIV $ 1.47 ± 1% $ 1.54 ± 1% $ 1.62 ± 1% Selling price 0 0 28.35 ± 1% Total cash flow 1.47 ± 1% 1.54 ± 1% 29.97 ± 1% PV of cash flow 1.32 ± 1% 1.25 ± 1% 21.91 ± 1% Explanation: Some values below may show as rounded for display purposes, though unrounded numbers should be used for the actual calculations.
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