What is the value of this stock if the dividend increased

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  1. The dividend-growth model may be used to value stock:

V= D(o)(1+g)

k-g

  1. What is value of a stock if: D(o) = $ 2, k= 10%, g=6%
  2. What is the value of this stock if the dividend increased to $ 3 dollars and the other variables remained constant?
  3. What is the value of this stock if the required return declines to 7.5% and the other variables remain constant ?
  4. What is the value of the stock if the growth rate declines to 4% and the other variable remain constant
  5. What is the value of this stock if the dividend is increased to $ 2.30, growth rate declines to 4% and the required return remains at 10% ?

Reference no: EM131732923

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