Question

The last dividend on Cefamous’ common stock was $2.25, and the expected growth rate is 7.5%. If you require a rate of return of 22.50%, what is the highest price you should be willing to pay for this stock?

Answer 1

Ответ:

$62,11

Объяснение:

Данные, представленные в вопросе:

последний дивиденд, D0 = $2.25

Темп роста дивидендов, g = 7.5% = 0.075

Требуемая норма прибыли, r= 22.50% = 2.250

Сейчас,

Дивиденды за 1 год = $2.25 × ( 1 + 0.075 ) = $2.41875

Дивиденды за 2 года = $2.41875 × ( 1 + 0.075 ) = $

= $43.11

Цена акций за 2 года = [ $2,60015625 × ( 1 +  0.075) ] ÷ (0.12 - 0.075 )

Поэтому,

Текущая цена акций = суммы, дисконтированные обратно к текущему моменту по требуемой норме доходности.

= $62,11

Answer 2

To determine the highest price you should be willing to pay for the stock, you can use the dividend discount model (DDM) formula. The DDM calculates the intrinsic value of a stock by discounting its future dividends back to the present value.

The formula for the DDM is as follows:

$\text{Stock Price} = \frac{\text{Dividend}}{\text{Required Rate of Return} - \text{Growth Rate}}$

Let's substitute the given values into the formula:

Dividend = $2.25 Growth Rate = 7.5% or 0.075 Required Rate of Return = 22.50% or 0.225

Using the formula, we can calculate the highest price you should be willing to pay for the stock:

$\text{Stock Price} = \frac{2.25}{0.225 - 0.075}$

Simplifying the expression:

$\text{Stock Price} = \frac{2.25}{0.15}$ $\text{Stock Price} = 15$

Therefore, the highest price you should be willing to pay for this stock is $15.