One year ago the stock price was 245 today the stock price


1. One year ago, the stock price was $245. Today, the stock price is $257. Over the year, the firm distributed Dividends of $1.25 per share. What is the total return of the stock over the past year?

2. Next year’s annual Dividend is expected to be $4, per share. The long-term growth in dividends is expected to be 3%, indefinitely. The firm’s Beta is 0.95, the Equity Risk Premium is 7.5%, and the risk free rate for the expected duration of the investment is 2.83%. What is the intrinsic value of the stock, per share?

3. Next year’s Dividend, per share, is expected to be $2.50. The current share price is $155. If the market capitalization rate is 14%, then what is the growth rate inspected to be in the future, given as an annualized rate?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: One year ago the stock price was 245 today the stock price
Reference No:- TGS01729531

Expected delivery within 24 Hours