Please show step by step calculation for each math 1.Gringotts Inc. pays a 9% dividend...

60.1K

Verified Solution

Question

Finance

Please show step by step calculation for each math

1.Gringotts Inc. pays a 9% dividend on $40 par value preferred stock. What is the fair value of the stock if our required rate of return is 5%? What is the expected return from the stock?

2. Gringotts Inc. common stock recently paid a $4 dividend. Their dividends are expected to grow at 5% per year. How much should we be willing to pay for the stock if our required rate of return is 10%.?

3.Standard Bank stock will pay a dividend of BDT 2.00, has a market price of BDT 9.00, and the expected growth rate is 10%. What is the expected return from this stock?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students