The most recent dividend per share paid on the stock

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1. ABC, Inc stock currently sells for $45 per share. The market requires a 9 percent return on the firm's stock. If the company maintains a constant 5.5 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?

2. ABC, Inc pays dividends annually. The expected dividend payment in year 5 is $12.00. The growth rate, which is currently 15%, is expected to decline linearly over six years, between year 5 and year 11, to a stable rate of 6% thereafter. The required return is 10%. Calculate the stock price of ABC, Inc two years from now.

3. ABC, Inc has a current dividend of $10.00 and a required rate of return of 10%. A dividend growth rate of 15% is projected for the next 2 years, followed by a 10% growth rate for the next 4 years before settling down to a constant 4% growth rate thereafter. What is the expected stock price of ABC in year 4?

Reference no: EM132050394

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