What should be the price for common stock paying

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Reference no: EM132058730

1. If the dividend yield for year one is expected to be 4% based on the current price of $80, what will year seven dividend be if dividends grow at a constant 2%?

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2. What dividend per share would be reported in the financial press for a stock that currently has 4.5% dividend yield and the most recent stock price was $75.

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3. What should be the price for a common stock paying $1.35 annually in dividends if the dividend will remain constant (zero growth dividend), indefinitely, and the expected return is 5.5%?

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Reference no: EM132058730

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