If D1 = $3.7, g (which is constant) = 5.6%, and P0 = $75.6, what is the required rate of return on the stock? That is, solve for r.
A stock is expected to pay a dividend of $2.4 at the end of the year. The required rate of return is rs = 16.6%, and the expected constant growth rate is g = 6.3%. What is the stock's current price?
The common stock of Wetmore Industries is valued at $36.4 a share. The company increases their dividend by 2.2 percent annually and expects their next dividend to be $0.4. What is the required rate of return on this stock? That is, solve for r.
ABC Enterprises' stock is expected to pay a dividend of $1 per share. The dividend is projected to increase at a constant rate of 8.6% per year. The required rate of return on the stock is 15.6%. What is the stock's expected price 3 years from today (i.e. solve for P3)?
If D0 = $3.8, g = 4.4%, and P0 = $72.6, what is the required rate of return on the stock? That is, solve for r.