What is the amount of the last dividend company paid

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Question: 1. My Inc. has a dividend growth rate of 6 percent, a market price of $16 a share, and a required return of 16 percent. What is the amount of the last dividend this company paid?

2. A company pays a constant annual dividend of $3.00 a share and currently sells for $53 a share. What is the rate of return?

3. The Company is having financial difficulties and management has decided to decrease the firm's annual dividends. The last annual dividend was $2.10 a share but all future dividends will decrease by 3.5 percent annually. What is a share of this stock worth today at a required return of 16 percent?

4. Find the dividend for each of the following years if dividends grow at a constant 3% per year and the most recent dividend paid was $2.00

a. D2 b. D6 c. D10

5. Generation X's stock is currently selling for $15 a share. Their most recent dividend paid was $1.50/share and management just declared a dividend of $1.65. What is the annual growth rate?

6. If a company plans to pay an annual dividend of $1.50 per share next year, $1.15 per share a year for the following two years, and then a final liquidating dividend of $15 per share four years from now. How much is one share of this stock worth to you today if you require a rate of return of 17.7 percent of this risky investment?

7. A company paid a dividend of $1.25/share at the end of the year. They plan to increase the dividends by 20% year 1, 15% year 2 and 3% a year after that indefinitely. What are you willing to pay for this stock today if the required return is 18%?

8. Jane, LLC pays a constant annual dividend of $1.48 per share on its stock. Last year at this time, the market rate of return on this stock was 15.7 percent. Today, the market rate has fallen to 13.3 percent. What would your capital gains yield have been if you had purchased this stock one year ago and then sold the stock today?

Reference no: EM132042577

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