General Importers announced that it will pay a dividend of $4.05 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 5 years. Then, 7 years from today, the company will begin paying an annual dividend of $2.15 forever. The required return is 12.2 percent. What is the price of the stock today?
$12.44 |
||
$13.52 |
||
$11.48 |
||
$17.62 |
||
$3.61 |
Value as on year 7=D7/required return
=(2.15/0.122)=$17.62295082
Hence current price=Future value*Present value of discounting factor(rate%,time period)
=4.05/1.122+$17.62295082/1.122^6
=$12.44(Approx).
General Importers announced that it will pay a dividend of $4.05 per share one year from...
General Importers announced that it will pay a dividend of $3.75 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 6 years. Then, 8 years from today, the company will begin paying an annual dividend of $1.85 forever. The required return is 11.6 percent. What is the price of the stock today?
General Importers announced that it will pay a dividend of $3.95 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 7 years. Then, 9 years from today, the company will begin paying an annual dividend of $2.05 forever. The required return is 12 percent. What is the price of the stock today?
Symon's Suppers Co. has announced that it will pay a dividend of $4.45 per share one year from today. Additionally, the company expects to increase its dividend by 3.9 percent annually. The required return on the company's stock is 11.7 percent. What is the current share price?
Symon's Suppers Co. has announced that it will pay a dividend of $4.19 per share one year from today. Additionally, the company expects to increase its dividend by 4.2 percent annually. The required return on the company's stock is 10.4 percent. What is the current share price?
Symon's Suppers Co. has announced that it will pay a dividend of $4.25 per share one year from today. Additionally, the company expects to increase its dividend by 4.5 percent annually. The required return on the company's stock is 10.7 percent. What is the current share price?
Great American Coal company just announced that it will pay an annual dividend of $3.60 a share one year from now. Two years from now, the company expects to pay a $28 a share liquidating dividend. After that, the company will cease operations. What is the current value per share at a discount rate of 12.5%? Is it A.$25.32, B.$24.28,C.$29.88, D.$26.75?
Symon's Suppers Co. has announced that it will pay a dividend of $4.21 per share one year from today. Additionally, the company expects to increase its dividend by 4.3 percent annually. The required return on the company's stock is 10.5 percent. What is the current share price? $64.51 $63.74 $67.90 $70.82 O $40.10
A company expects to pay a dividend of $3.50 per share one year from today. The dividend is expected to grow at 25 percent per year for two years. Thereafter, the dividend will grow at 4 percent per year in perpetuity. If the appropriate discount rate is equal to 12 percent, what is the price of the company's stock today?
A share is expected to pay a dividend of $1.40 in one year. This dividend is expected to increase at an annual rate of 5% forever. If the required return is 15%, what is the fair value of this share today?
NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.59 a share. The following dividends will be $0.64, $0.79, and $1.09 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3.9 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 13 percent?