1. If the dividend yield for year one is expected to be 4% based on the current price of $80, what will year seven dividend be if dividends grow at a constant 2%?
please show step by step instructions.
2. What dividend per share would be reported in the financial press for a stock that currently has 4.5% dividend yield and the most recent stock price was $75.
please show step by step instructions.
3. What should be the price for a common stock paying $1.35 annually in dividends if the dividend will remain constant (zero growth dividend), indefinitely, and the expected return is 5.5%?
Please show step by step instructions.