finance quiz time limited

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A company’s dividend grows at a constant rate of 5 percent p.a.. Last week it paid a dividend of $2.93. If the required rate of return is 13 percent p.a., what is the price of the share 2 years from now? (round to nearest cent)

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ABC Limited has a stable sales track record but does not expect to grow in the future. Its last annual dividend was $2.23. If the required rate of return on similar investments is 18 percent p.a., what is the current share price? (to the nearest cent; don’t use the $ sign)

After paying a dividend of $1.90 last year, a company does not expect to pay a dividend for the next year. After that it plans to pay a dividend of 6.05 in year 2 and then increase the dividend at a rate of 5 percent per annum in years 3 to 6. What is the expected dividend to be paid in year 4? (to nearest cent; don’t include $ sign)

Which of the following best describes the constant-growth dividend discount model?

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A company has just paid its first dividend of $0.83. Next year’s dividend is forecast to grow by 9 percent, followed by another 9 per cent growth in year two. From year three onwards dividends are expected to grow by 2.2 percent per annum, indefinitely. Investors require a rate of return of 14 percent p.a. for investments of this type. The current price of the share is (round to nearest cent)

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Which ONE of the following statements is true about ordinary shares?

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Equity holders require a higher return than debt holders because

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A company has just paid its annual dividend of $3.47 yesterday, and it is unlikely to change the amount paid out in future years. If the required rate of return is 14 percent p.a., what is the share worth today? (to the nearest cent; don’t include $ sign)

A company has its share currently selling at $13.40 and pays dividends annually. The company is expected to grow at a constant rate of 2 percent pa.. If the appropriate discount rate is 19 percent p.a., what is the expected dividend, a year from now (rounded to nearest cent)?

Question text

The strong-form version of the efficient market hypothesis states that stock prices reflects ______________ information relevant to the firm.

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