- Given the following stock quote, what is the stock’s earnings per share?
- 52 weeks Yld Vol Net
- Hi Lo Stock Div % PE 100s Hi Lo Close Chg
- 80 60 PepsiCo 12 1.5 25 605 75 73 74 1
- $3.20
- $2.96
- $2.52
- $1.96
- $1.12
- Finley Co. is growing quickly. Dividends are expected to grow at a 25% rate for the next three years, with the growth rate falling off to a constant 6% thereafter. If the required return is 14%, the company will pay a dividend next year of $3.125 (D1), and the stock price is currently $52.71, what is the firm’s current dividend yield (approximately)?
- 9%
- 2%
- 0%
- 1%
- 0%
- What would you pay today for a stock that is expected to make a $1.50 dividend in one year if the expected dividend growth rate is 5% and you require a 11.6% return on your investment?
- $12.93.
- $13.58.
- $23.86.
- $22.73.
- $29.33.
- Our firm has just issued preferred stock called 10/10 preferred. The stock will pay a $10 dividend per year, but the first dividend will not be paid for 10 years. If you require a 9% return on this stock, how much should you pay today (approximately)?
- $111.
- $99.
- $56.
- $51.
- $47.
- McGonigal’s Meats, Inc. currently pays no dividends. The firm plans to begin paying dividends in 6 years. The first dividend will be $1.50 (D6) and dividends will grow at 6% per year thereafter. Given a required return of 10%, what would you pay for the stock today (approximately)?
- $21.17
- $23.28
- $17.10
- $37.50
- $15.00
- The XYZ Corporation just paid a cash dividend of $3.00 today (D0). It is estimated that this firm’s dividends will grow at 30% per year for the next two years. After this two year period the growth rate will drop to 6%for the foreseeable future. If you are considering buying XYZ’s common stock, and, because of risks involved, require a return of at least 12%, what is the most you should be willing to pay for this stock (approximately)?
- $53
- $90
- $65
- $82
- $79
- What would you pay today for a stock that is expected to make a $2.80 (D1) dividend in one year if the expected dividend growth rate is 4% and you require a 14% return on your investment?
- $22.40.
- $23.14.
- $20.00.
- $29.12.
- $28.00.
- The Doug and Bob Company currently pays a dividend of $2.00. The company plans to increase the dividend for the next four years at 10%. After four years, the growth rate will drop to 4% per year forever. Given a required return of 12%, what would you pay for the stock today (approximately)?
- $104
- $32
- $38
- $34
- $48
- Kaci Co. is expected to pay the following dividends over the next three years: $6, $3, and $1. Afterwards, the company pledges to maintain a constant 5% growth rate in dividends forever. If the required return on the stock is 10%, what is the current share price (approximately)?
- $21
- $27
- $24
- $33
- $20
- Duke stock’s dividend per share (DPS) last year was approximately what from the following quote.
- 52 weeks Yld Vol Net
- Hi Lo Stock Div % PE 100s Hi Lo Close Chg
- 49 20 Duke ? 3 18 209 45 42 44.20 0.56
- $1.02
- $0.25
- $4.07
- $2.35
- $2.89