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a. A corporation is expected to pay a dividend of $3.36 at the end of the year. The required rate of return is rs = 8.6%. What would the stock's price be if the growth rate were 8.8%?
b. A corporation is expected to pay a dividend of $4.26 at the end of the year. The required rate of return is rs = 11%. What would the stock's price be if the growth rate were -3.5%?
c. If D1 = $4.00, g = 8%, and P0 = $20, what is the Corporation's expected dividend yield, capital gains yield, and total expected return for the coming year?
d. A corporation paid a $0.76 dividend per share in 1976, which grew to $4.58 in 2019. This growth is expected to continue. What is the value of this stock at the beginning of 2020 when the required return is 8.7 percent?
e. A corporation just gave a $6.02 dividend. The dividend is expected to grow by 27% the next year, 21% the year after that, 19% the year after that, 15% the following year, and 6% every year thereafter. If the discount rate is 10%, what should the price of the stock be today?
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