Find the present value of a stock which will pay a dividend of $60 later today, with each subsequent annual dividend at a constant $50, given an annual interest rate of 15%.
Suppose you are gifted a stock which would sell for $750 today, and pays its next dividend of $45 one year from today. If the current annual discount rate is 9%, what is the growth rate of these dividends?
a. 5% a
Find the present value of a stock which will issue a $35 dividend one year from today, which will grow by 10% per year for the following 3 years and then fall to 4% growth per year for each year after that. Assume an effective annual interest rate of 12%.
The Kepler Hospitality Group is in financial trouble: They will issue a $90 dividend later today, but they expect that dividends will fall by 4% per year for each year after. Find the present value of a share of this companyâ€™s stock, given an annual discount rate of 12%.