Determine the current value of a share of stock


Question 1.) If a company's last dividend was $ 1.00 per share and dividends are expected to grow at a rate of 6%. What is the current value of a share of this stock to an investor who requires a 10 percent rate of return?

Question 2.) What is the current per-share value of JRM Corporation to an investor who requires a 10 percent annual rate of return, if JRM's current per-share dividend is $3 and expected to remain at $3 for the foreseeable future?

Question 3.) A company is expected to pay dividends of $4.50, $4.50 and $5.50 over the next three years. The stock is expected to have a value of $50.00 three years from today. If the risk-free rate is 5%., the market risk premium 14% and Pure has a beta of 1.14, what is the current value of Pure?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Determine the current value of a share of stock
Reference No:- TGS01925137

Now Priced at $25 (50% Discount)

Recommended (95%)

Rated (4.7/5)