A company pays a dividend today of $4, and this dividend is expected to grow each year by 4%. The discount rate is 10%. What is the market price of the stock?
A firm issued a preferred stock which matures in 30 years and carries a maturity value of $45. The dividend is $4 per year over the 30 year period. The current market discount rate for this stock is 8%. What is the value of the preferred share?
A stock with a current price of $25 / share pays a current annual dividend of $2 which is expected to increase by 4% per year. What is the stock's capitalization rate?© BrainMass Inc. brainmass.com June 3, 2020, 11:31 pm ad1c9bdddf
A - Current price of stock = Expected Dividend / ( discount rate - grouwth rate)
Current price ...
The solution computes stock valution based on dividend in a given scenario.