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What price would expect app holdings stock

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Reference no: EM132584562

Question 1: Estimate the annual required rate of return for BTO stock, using the Constant Dividend Growth Model. BTO just paid an annual dividend of $15.36 per share, and the concensus analyst estimate is that the dividend will grow at 7.1% each year. The current market value of BTO stock is $194.68 per share. Answer as a % to 2 decimal places (e.g., 12.34% as 12.34).

Question 2: Use the Constant Dividend Growth Model to compute the expected price of a stock in 4 years. Each share is expected to pay a dividend of $7.4 in one year. Investors' annual required rate of return is 19%, and the expected growth rate of the dividend is 2.9% per annum. Answer to the nearest penny.

Question 3: What is the estimated current price of a share of ABC Company stock based on the Constant Dividend Growth Model? The annual required rate of return is 13.6%. ABC just paid their annual dividend of $4.28 a share and the expected growth rate of the dividend is 4.9% per year. Answer to the nearest penny.

Question 4: What is the expected annual capital gain yield for Orange Corp stock, based on the Constant Dividend Growth Model? The company plans to pay an annual dividend of of $11.28 per share in one year. The expected annual growth rate of the dividend is 9.49%, and the required rate of return for the stock is 11.9%. Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34).

Question 5: App Holdings is expected to pay dividends of $1.50 every six months for the next three years. If the current price of App Holdings stock is $22.60, and App Holdings' equity cost of capital is 18%, what price would you expect App Holdings' stock to sell for at the end of three years?

Question 6: A stock just paid an annual dividend of $1.99 per share. The expected growth rate of the dividend is 13.26%. The required rate of return for the stock is 18.36% per annum. Based on the Constant Dividend Growth Model, what is the expected dividend yield for the stock for the coming year? Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34).

Reference no: EM132584562

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