Estimated value of the stock today

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A stock is expected to pay the following dividends: $1.1 four years from now, $1.5 five years from now, and $2 six years from now, followed by growth in the dividend of 6% per year forever after that point. There will be no dividends prior to year 4. The stock's required return is 12%. The stock's current price (Price at year 0) should be $____________.

A stock's dividend in 1 year is expected to be $2.3. The dividend is expected to remain the same indefinitely. The stock's required return is 10%. The estimated value of the stock today is $________.

A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the amount of $2.4. It is expected to pay a dividend of $2.7 exactly five years from now. The dividend is expected to grow at a rate of 7% per year forever after that point. The required return on the stock is 14%. The stock's estimated price per share exactly TWO years from now, P2 , should be $______.

Do not round any intermediate work, but round your final answer to 2 decimal places (ex: $12.34567 should be entered as 12.35).

Reference no: EM131928363

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