Answer to Question #180419 in Management for Tejas Mody

Question

  IMC paid a dividend of $1.60 on its common stock yesterday. The dividends are expected to grow at 6% per year indefinitely. If the 10-year Treasury bond yield is 3.6%, IMC stock beta is 1.2, and market rate of return is 11%, estimate the value of IMC stock 3 years from now.

 

 

 

Answer 1

IMC paid a dividend of 1.60 on its common stock yesterday The dividends are expected to grow at 6% per year indefinitely. If the 10-year Treasury bond yield is 3.6% IMC stock beta is 1.2, and market rate of retum is 11% estimate the value of IMC stock 3 years from now. FET's preferred stock is selling at 544 on the market and pays an annual dividend of $3.20 per share. What is the expected rate of return on the stock? If an investor's required rate of retum is 10%, what is the value of the stock to that investor Considering the investor's required rate of return. does this stock seem to be a desirable investment? CONS, Inc. common stock is currently selling for S10 per share is expected to pay a S1.70 dividend, and sell for $14.30 ons year from now. What are the dividend yield growth rate, and Sky, Inc. paid a dividend of S4,00 per share on its common Hock yesterday. Dividends are expected to grow at a constant Fate of 10% for the next three years, at which point the dividends will begin to grow at a constant rate indefinitely in the stock is selling for $40 today and the required return is 11%, what it the expected annual dividend growth rate after year three?