The Starr Co. just paid a dividend of $1.90 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. IF investors require a 12 percent return on stock, what is the current price? What will the price be in three years? In 15 years? 9.3 Stock Values For the company in the previous problems,what is the dividend yield? What is the expected capital gains yield? 9.9 Growth Rate The newspaper reported last week that Bennington Enterprises earned $28 million this year. The report also stated that the firm's return on equity is 15 percent. Bennington retains 70 percent of its earnings. What is the firm's earnings growth rate? What will next year's earnings be?
Paper#13594 | Written in 18-Jul-2015Price : $25