Albright Motors is expected to pay a year-end dividend of $3.00 a share (D1 = $3.00). The stock currently sells for $30 a share. The required (and expected) rate of return on the stock is 16 percent. If the dividend is expected to grow at a constant rate, g, what is g?

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Albright Motors is expected to pay a year-end dividend of $3.00 a share (D1 = $3.00). The ...

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Response explains the steps to calculate dividend constant growth rate by an example

Explain how the value of the stock paying dividend is estimated. What is the difference between constantgrowthdividend and non-constantgrowthdividend models? What is meant by present value of growth opportunities (PVGO)? The current dividend is $2.00 and is expected to grow 5% indefinitely. What is the value of the company'

What is the expected constantgrowthrate of dividends for a stock currently priced at $50, that just paid a dividend of $4, and has a required return of 18%?
A) 3.41%
B) 5.50%
C) 9.26%
D) 12.5%

The common stock of Denis and Denis Research, Inc., trades for $60 per share. Investors expect the company to pay a $3.90 dividend next year, and they expect that dividend to grow at a constantrate
forever. If investors require a 10% return on this stock, what is the dividendgrowthrate that they are anticipating?

Grant Corporation's stock is selling for $40 in the market. The company's beta is 0.8, the market risk premium is 6 percent, and the risk-free rate is 9 percent. The previous dividend was $2 (i.e., D0 = $2) and dividends are expected to grow at a constantrate.
What is the growthrate for this stock?

1. Stock. What is the value of a stock with a
a. $2 dividend just paid and an 8% required return with 0% growth?
b. $3 dividend just paid and a 9% required return with 1% growth?
c. $4 dividend to be paid and a 10% required return with 2% growth?
d. $5 dividend to be paid and a 11% required return with 3% growth?
2. Sto

Little Rock stock is currently selling for $42.86. It is expected to pay a dividend of $3.00 at the end of the year. Dividends are expected to grow at a constantrate of 3% indefinitely. Compute the required rate of return on LR stock.

McDonnell Manufacturing is expected to pay a dividend of $1.50 per share at the end of the year (D1 = $1.50). The stock sells for $34.50 per share, and its required rate of return is 11.5%. The dividend is expected to grow at some constantrate, g, forever. What is the equilibrium expected growthrate?

The Jon's Shoe Company, whose common stock is currently selling for $40 per share, is expected to pay a $2.00 dividend in the coming year. If investors believe that the expected rate of return on XYZ is 14%, what growthrate in dividends must be expected?
a. 5%
b. 14%
c. 9%
d. 6%

Boehm Incorporated is expected to pay a $1.70 per share dividend at the end of this year (i.e., D1 = $1.70). The dividend is expected to grow at a constantrate of 4% a year. The required rate of return on the stock, rs, is 13%. What is the value per share of the company's stock?

1. Stock. What is the value of a stock with a
a. $2 dividend just paid and an 8% required return with 0% growth?
b. $3 dividend just paid and a 9% required return with 1% growth?
c. $4 dividend to be paid and a 10% required return with 2% growth?
d. $5 dividend to be paid and a 11% required return with 3% growth?