What is baby bella dividend yield

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1. Crystal Glass recently paid $3.60 as an annual dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the next 3 years, respectively. Beginning 4 years from now, the dividend is expected to increase by 3.25 percent annually. What is one share of this stock worth to you if you require a 12.5 percent rate of return on similar investments? 

2. The Big Wolf Mining Co just paid a dividend of $1.45 per share on its stock. The dividends are expected to grow at a constant rate of 6% per year indefinitely. If investors require a return of 11% on the stock, what is the current price? What will the price be in 3 years, in 15 years?

3. The next dividend for Baby Bella Cheese will be $1.89 per share. The dividends are anticipated to maintain a growth rate of 5% forever. If the stock currently sells for $38 per share, what is the required return? 

  • What is Baby Bella's dividend yield?
  • What is the firm's expected capital gain yield?

4. Johnny's Mexican Restaurants, Inc. is expected to pay the following dividends over the next 4 years: $12, $8, $7 and $2.50. Afterwards, the company pledges to maintain a constant 5% growth rate in dividends forever. If the required return on the stock is 12%, what is the current share price?

Reference no: EM131572369

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