1. Asonia Co. will pay a dividend of $4.70, $8.80, $11.65, and $13.40 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 11.1 percent on the company's stock, what is the stock price?
Multiple Choice
$33.54
$28.65
$31.15
$41.40
$35.40
2. Knightmare, Inc., will pay a dividend of $6.15, $9.05, and $12.25 per share for each of the next three years, respectively. The company will then close its doors. Investors require a return of 11.7 percent on the company's stock. What is the current stock price?
Multiple Choice
$25.34
$21.55
$27.29
$34.05
$28.88
1.Current price=Future dividends*Present value of discounting factor(rate%,time period)
=4.70/1.111+8.80/1.111^2+11.65/1.111^3+13.40/1.111^4
=$28.65(Approx).
2.Current price=Future dividends*Present value of discounting factor(rate%,time period)
=6.15/1.117+9.05/1.117^2+12.25/1.117^3
=$21.55(Approx).
1. Asonia Co. will pay a dividend of $4.70, $8.80, $11.65, and $13.40 per share for...
Asonia Co. will pay a dividend of $4.70, $8.80, $11.65, and $13.40 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 11.1 percent on the company's stock, what is the stock price?
9. Knightmare, Inc., will pay a dividend of $6.15, $9.05, and $12.25 per share for each of the next three years, respectively. The company will then close its doors. Investors require a return of 11.7 percent on the company's stock. What is the current stock price? 10. Brickhouse is expected to pay a dividend of $2.90 and $2.36 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.4 percent. What is...
Knightmare, Inc., will pay a dividend of $5.15, $8.05, and $11.25 per share for each of the next three years, respectively. The company will then close its doors. Investors require a return of 11 percent on the company's stock. What is the current stock price?
knightmare, inc. will pay a dividend of $5.05, $9.15, and $12.35 per share for each of the next three years Chapter 71 MC algo 7-19 Valuing Stock Knigma new pay a dividend 505 5915 and 25 pershare for each of the three years, respectively. The company will then close its doors. Investors requeretum of 5 percent on the company's stock What is the current stock price? 0 Os 0 0 о не во DELL Backspace 2020ABORE WEROVODOPAD DAGARNAR
Asonia Co. will pay a dividend of $5.30, $9.40, $12.25, and $14.25 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 9.8 percent on the company's stock, what is the stock price? $33.38 $37.71 $35.95 $31.68
Asonia Co. will pay a dividend of $5.40, $9.50, $12.35, and $14.10 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 10.2 percent on the company's stock, what is the stock price? $31.51 $35.88 $33.31 $43.57 $37.71
Flex Co. just paid total dividends of $625,000 and reported additions to retained earnings of $1,875,000. The company has 535,000 shares of stock outstanding and a benchmark PE of 15.5 times. What stock price would you consider appropriate? πο29 Multiple Choice Ο Ο Ο Ο Ο Knightmare, Inc., will pay a dividend of $6.75, $10.85, and $14.05 per share for each of the next three years, respectively. The company will then close its doors. Investors require a return of 10.4...
Sub Keidis Industries will pay a dividend of $3.85, $4.95, and $6.15 per share for each of the next three years, respectively. In four years, you believe that the company will be acquired for $56.00 per share. The return on similar stocks is 10.8 percent. What is the current stock price? 2:32 Multiple Choice $49,18 $64.37 $55.26 $52.43 S4R 69 18 of 20 Prev Next Gnomes R Us just paid a dividend of $1.82 per share. The company has a...
1. ABC, Inc. is expected to pay an annual dividend per share of $2.80, and investors require a rate of return on S&P500 index is 12%, with the T-bill rate at 6%. What should be the current share price of ABC's stock if ABC's beta is 1.7, with a growth rate of 5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. If firm A has a higher plowback ratio than firm B, then firm A...
Mariota Corp. just paid a dividend of $4.25 per share on its stock. The dividend growth rate is expected to be 3.25 forever and investors require a return of 13.5 percent on this stock. What will the stock price be in 13 years? Multiple Choice $57.16 $12.51 $64.88 $49.26