What is the current price-stopper wardrobe company

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1. The Stopper Wardrobe Company just paid a dividend of $1.45 per share on its stocks. The dividends are expected to grow at a constant rate of 6% per year indefinitely. If investors require an 11% return on the stock

a. what is the current price?

b. What will the price be in 3 years?

c. And in 15 years?

2. The next dividend payment by X Co. Inc. will be $1.89 per share. The dividends are anticipated to maintain a 5% growth rate forever. If the stock currently sells for $38.00 per share, what is required return?

3. Y & Co. will pay $3.40 per share dividend next year. The company pledges to increase its dividend by 4.5% per year indefinitely. If you require an 11% return on your investment, how much will you pay for the company's stock today?

4. PQR Co. is expected to maintain a constant 5.2% growth rate in dividends indefinitely. If the company has a dividend yield of 6.3%, what is the required return on the company's stock?

5. ABC company has an issue of preferred stock outstanding that pays a $4.75 dividend every year in perpetuity. If this issue is currently sells for $93 per share what is the required rate?

Reference no: EM132621905

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