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1 points
QUESTION 9
If D1 = $1.82, g (which is constant) = 10%, and P0 = $74.29, what is the stock’s expected dividend yield for the coming year? (Show your answer in decimal form to three places)
1 points
QUESTION 10
ABC Incorporated just paid a dividend of $1.92 on its common stock. Joe forecasts that the dividends for ABC will grow at a constant rate of 8% over the foreseeable future. Assuming that he is correct, how many total dollars of dividends should Joe expect to receive over the next five years? (Show your answer to the penny)
HI
As per policy we will solve only top most question here.
1. D1 = $0.90
g = 9.9%
P0 = $38.39
rate of return =k
as per Dividend discount model
P0 = D1/(k-g)
k-g = D1/P0
k = D1/P0 + g
k = 0.90/38.39 + 0.099
k = 0.122444
k = 12.24%
Hence option c is correct
same way
2. k = 0.3/36.30 + 0.041
k = 0.049264
k = 4.93%
hence option D is correct
3. k = 0.65/23.68 +0.08
k =10.75%
Hence option E is correct
4. k = 1.80/37.22 + 0.048
k = 9.6%
Hence option A is correct
5. k = 1.4/33.06 + 0.096
k = 13.8%
Hence option B is correct
Thanks
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