The Barry Blue jeans Denim Co. will pay a dividend of $100 one year from now. Subsequent dividends will rise by 6% for the next 4 years after that, and then remain constant. Given an annual discount rate of 8%, find the present value of this company’s stock. Select one:
a. $1324
b. $1120
c. $1287
d. $1482
e. $1520
The Parsons Cashew Company has issued stock which pays an annual dividend of $160, with the next dividend paid one year from today. If market interest rates are 14% annually, find the current price for a share of this company’s stock
Select one:
a. $1143
b. $944
c. $1598.
d. $1037.
e. $2330
Today you purchase a stock for $160 which will pay constant annual dividends, beginning one year from today. If the annual discount rate is 8%, find the amount for each dividend.
Select one:
a. $14.30
b. $17.40
c. $12.80
d. $15.20
e.$11.20
Suppose you own a stock which just paid a dividend of $40 today. Dividends will grow by 5% per year, with the next dividend paid one year from now. What will be the dividend you receive seven years from now?
Select one:
a. $56.
b. $53
c. $68
d. $64
e.$49
You own a stock which will pay a dividend of $60 one year from now. Subsequent dividends will increase by 1% per year. If the current annual discount rate is 12%, find the present value of this stock.
Select one:
a. $640
b. $590
c. $470
d. $820
e.$545
