What is the return shareholders are expecting

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Q1: Circuit City Stores (CC) recently paid a $.16 dividend. The dividend is expected to grow at a 23 percent rate. At the current stock price of $7.96, what is the return shareholders are expecting?

Q2:Helm Inc. stock recently paid a $3.50 dividend. The dividend is expected to grow at 6% per year indefinitely. What would we be willing to pay if our required return on Helm stock is 12%?

Q3:A firm does not pay a dividend. It is expected to pay its first dividend of $0.15 per share in 3 years. This dividend will grow at 9 percent indefinitely. Using a 10 percent discount rate, compute the value of this stock.

Q4: If a preferred stock from Ecology and Environment, Inc. (EEI) pays $2.50 in annual dividends, and the required return on the preferred stock is 5.8 percent, what's the value of the stock?

Reference no: EM132142260

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