What is the current price of the stock

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Q1. Consider a stock that will have price of $35.04 one year from now and pay a dividend of $4.35 in one year. The expected rate of return is 5.7%. What is the current price of the stock?

Q2. A stock has a return on equity of 15.7% and a plowback ratio of 50%. What is the sustainable growth rate? Enter you answer as a percentage. Do not include the percentage sign in your answer.

Q3. Consider a stock that will have dividends in the next three periods of $1.34, $1.61, and $1.67, respectively. The interest rate is 12%. What is the growth rate of the dividend in period 3? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Q4. Stark Industries expects an earnings per share of $2.8 and reinvests 45% of its earnings. Management projects a rate of return of 2% on new projects and investors expect a 9% rate of return on the stock. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Reference no: EM132997093

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