Favored stock will pay a dividend this year of $2.64 per share. Its dividend yield is 8%. At what price is the stock selling?
Preferred Products has issued preferred stock with an annual dividend of $6.93 that will be paid in perpetuity
Steady As She Goes Inc. will pay a year-end dividend of $4.00 per share. Investors expect the dividend to grow at a rate of 5% indefinitely
Integrated Potato Chips paid a $2.00 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 5% per year.
Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 10%. Its expected earnings this year are $3 per share. Find the stock price, P/E ratio, and growth rate of dividends for plowback ratios of:
Arts and Crafts, Inc., will pay a dividend of $3 per share in 1 year. It sells at $50 a share, and firms in the same industry provide an expected rate of return of 12%. What must be the expected growth rate of the company’s dividends?
No-Growth Industries pays out all of its earnings as dividends. It will pay its next $2 per share dividend in a year. The discount rate is 9%.