EXAMPLES-1
1. Most recently paid dividend of a corporation is 7 TL per share. This is a zero growth (no-growth) stock. If the required rate of return of the investors is 16 %, what is the intrinsic value (price) of the stock now?
2. A corporation’s most recently paid dividend is 4 TL per share. The dividend is expected to grow at a constant rate of 8 % each year. If the required rate of return of the investors is 14 %, what is the intrinsic value value (price) of the stock now?
3. A corporation’s most recently paid dividend is 1.75 TL per share. The dividend is expected to grow at a constant rate of 5 % each year. If the price of the stock is 25 TL now, what is the required rate of return of the investors?
4. A corporation’s most recently paid dividend is 3 TL per share. Return on equity is 20 %. Plowback ratio is 30 %. Required rate of return of the investors is 12 %. What is the intrinsic value (price) of the stock now?
5. A corporation’s most recently paid dividend is 4 TL per share. The dividend is expected grow at a constant rate of 7 % each year. The required rate of return of the investors is 12 %.
a.What is the intrinsic value (price) of the stock now?
b.What part of the value is due to current assets, what part is due to growth opportunities?
6. Next dividend of a corporation is expected to be 2 TL per share. The dividend is expected to grow at a constant rate of 6 % each year. If the required rate of return of the investors is 15 %, what is the intrinsic value (price) of the stock now?
7. A corporation’s most recently paid dividend is 2.40 TL per share. The dividend is expected to grow at a constant rate of 5 % each year. If the required rate of return of the investors is 12 %, what is the intrinsic value (price) of the stock at the end of the 4th year?
8. A corporation’s most recently paid dividend is 2 TL per share. The dividend is expected to grow at rate of 20 % for the next 4 years. Beginning from the fifth year the dividend will grow at a constant rate of 8 % each year. If the required rate of return of the investors is 15 %, what is the intrinsic value (price) of the stock now?
9. Halkbank’s stock price is expected to be 12.38 TL at the end of the first year. Constant growth rate of Halkbank is 5 %, required rate of return of the investors is % 15.5, return on equity is % 13.
a.What is the expected dividend of Halkbank next year?
b.What is the most recently paid dividend of Halkbank?
c.What is the plowback ratio of Halkbank.