Which of the following is closest to the forward price of a share price if Cash Price = Rs.750, Futures Contract Maturity = 1 year from date, Market Interest rate = 12% and dividend expected is 6%? Rs.795 Rs.705 Rs. 845 None of these

A twelve-month short forward contract on a dividend-paying stock is entered into when the stock price is 133 and this stock is expected to pay a dividend of 5 in seven months. In addition, the risk-free rate of interest is 7.13% p.a. with semi-annual compounding for all maturities. Answer the following questions: (1) What are the forward price and the initial value of this forward contract? (2) Nine months later, the price of the stock is $152 and the risk-free rate of interest remains the same. What are the forward price and the value of the forward contract?

Noel Company's common stock has just paid a $2.00 dividend. If investors believe that the expected rate of return on P. Noel is 14% and that dividends will grow at the rate of 5% per year for the foreseeable future, what is the value of a share of P. Noel stock? A. $15.00 B. $22.22 C. $23.33 D. $40.00

Forward and futures contract prices on underlying asset that paysno dividend/known dividend/known dividend yield

If the current dividend (D0 ) is $3.20, the expected rate of return (R) is 25%, and dividend growth rate (g) is 3%. What is the share price valuation in 4 years (P4 )?

PIN Ltd is a firm that has been underperforming for many years and has just had a change in management. The new management team have just made an announcement that they expect to start paying an annual dividend 4 years from today, and they expect that after the initial dividend of $4 it will grow at a constant rate of 6% per annum. The required rate of return for PIN Ltd shares is 14% per annum. Which of the following is closest to the value of PIN Ltd shares? (a) $18.41 (b) $21.36 (c) $29.60 (d) $33.75