Assume that at the end of the next year, Company A will pay $ 2.00 dividend per share, an increase from the current dividend of $1.50 per share. After that, the dividend is expected to increase at a constant rate of 5%. If you require a 12% return on the stock, what is the value of the stock?
A stock is not expected to pa dividends until 3 years from now. The dividend is then expected to be $2 per share, the dividend payout ratio is expected to be 40%, and the return on equity is expected to be 15%. If the required rate of return is 12%, the value of the stock today is closed to