What is the expected price of this stock

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1. Terminal Emulator Co. pays a constant $13.83 dividend on its stock. The company will maintain this dividend for the next 13 years and will then cease paying dividends forever. If the required return on this stock is 12.6 percent, what is the current share price?

2. Screenshot, Inc., just paid a dividend of $2.25 per share on its stock. The dividends are expected to grow at a constant rate of 3.6 percent per year, indefinitely. Assume investors require an 8.8 percent return on this stock. What is the expected price of this stock in 14 years?

3. The stock price of Tomboy, Inc. is $42.91. Investors require a 9 percent rate of return on similar stocks. If the company plans to pay a dividend of $3.93 next year, what growth rate is expected for the company’s stock price? Enter rate in percents, to three decimal places.

Reference no: EM132015996

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