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Fowler, Inc., just paid a dividend of $2.70 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. Assume investors require a return of 9 percent on this stock.

a. What is the current price?

b. What will the price be in six years and in thirteen years?

The next dividend payment by Hoffman, Inc., will be $3.20 per share. The dividends are anticipated to maintain a growth rate of 6.75 percent forever. Assume the stock currently sells for $50.00 per share.

a. What is the dividend yield?

b. What is the expected capital gains yield?

The stock price of Alps Co. is $53.30. Investors require a return of 15 percent on similar stocks. If the company plans to pay a dividend of $3.30 next year, what growth rate is expected for the company's stock price?

Synovec Corporation is expected to pay the following dividends over the next four years: $6.80, $17.80, $22.80, and $4.60. Afterward, the company pledges to maintain a constant 5.75 percent growth rate in dividends forever.

If the required return on the stock is 8 percent, what is the current share price?

Reference no: EM132379932

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