Burnett Corp. pays a constant $8.25 dividend on its stock. The company will maintain this dividend...
Burnett Corp. pays a constant $8.25 dividend on its stock. The company will maintain this dividend for the next 13 years and will then cease paying dividends forever. IF the required return on this stock is 11.2%, what is the current share price? Please work in Excel and do step by step! Thanks so much!
Homework Answers
Current share price=$8.25*Present value of annuity factor(11.2%,13)
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=$8.25[1-(1.112)^-13]/0.112
=$8.25*6.682519757
=$55.13(Approx).
Excel
| Current Share Price =PV(RATE,NPER,PMT) |
| Current Share Price =PV(0.112,13,-8.25) |
| Current Share Price =$55.13 |
Add Answer to:
Burnett Corp. pays a constant $8.25 dividend on its stock. The
company will maintain this dividend...
Burnett Corp. pays a constant $27 dividend on its stock. The company will maintain this dividend...
Burnett Corp. pays a constant $27 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on this stock is 13 percent, what is the current share price? Multiple Choice $173.51 $297.00 $161.22 $153.55 $150.48
Burnett Corp. pays a constant $12 dividend on its stock. The company will maintain this dividend...
Burnett Corp. pays a constant $12 dividend on its stock. The company will maintain this dividend for the next 5 years and will then cease paying dividends forever. If the required return on this stock is 7 percent, what is the current share price?
Apocalyptica Corp. pays a constant $25 dividend on its stock. The company will maintain this dividend...
Apocalyptica Corp. pays a constant $25 dividend on its stock. The company will maintain this dividend for the next 13 years and will then cease paying dividends forever. Required: If the required return on this stock is 7 percent, what is the current share price? $223.57 $325.00 $208.94 $219.39 $204.76
Apocalyptica Corp. pays a constant $26 dividend on its stock. The company will maintain this dividend...
Apocalyptica Corp. pays a constant $26 dividend on its stock. The company will maintain this dividend for the next 7 years and will then cease paying dividends forever. Required: If the required return on this stock is 11 percent, what is the current share price?
Apocalyptica Corp. pays a constant $29 dividend on its stock. The company will maintain this dividend...
Apocalyptica Corp. pays a constant $29 dividend on its stock. The company will maintain this dividend for the next 10 years and will then cease paying dividends forever. Required: If the required return on this stock is 14 percent, what is the current share price?
Gruber Corp. pays a constant $8.45 dividend on its stock. The company will maintain this dividend...
Gruber Corp. pays a constant $8.45 dividend on its stock. The company will maintain this dividend for the next 15 years and will then cease paying dividends forever. The required return on this stock is 13 percent. What is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price
Gruber Corp. pays a constant $9 dividend on its stock. The company will maintain this dividned...
Gruber Corp. pays a constant $9 dividend on its stock. The company will maintain this dividned for the next 12 years and will then cease paying dividends forever. If the required return on this stock is 10 percent, what is the current share price?
Burkhardt corp. pays a constant $14.10 dividend on it's stock. The company will maintain this dividend...
Burkhardt corp. pays a constant $14.10 dividend on it's stock. The company will maintain this dividend for the next 9 years and will then cease paying dividends forever. If the required return on this stock is 10 percent, what is the current share price?
Gruber Corp. pays a constant $9.35 dividend on its stock. The company will maintain this dividend...
Gruber Corp. pays a constant $9.35 dividend on its stock. The company will maintain this dividend for the next 10 years and will then cease paying dividends forever. The required return on this stock is 10 percent. What is the current share price? (Do not round intermediate calculations and round your final answe
Burkhardt Corp. pays a constant $13.40 dividend on its stock. The company will maintain this dividend...
Burkhardt Corp. pays a constant $13.40 dividend on its stock. The company will maintain this dividend for the next 6 years and will then cease paying dividends forever. If the required return on this stock is 9 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) Share price
Gruber Corp. pays a constant $8.45 dividend on its stock. The company will maintain this dividend for the next 15 years and will then cease paying dividends forever. The required return on this stock is 13 percent. What is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price
Burkhardt Corp. pays a constant $13.40 dividend on its stock. The company will maintain this dividend for the next 6 years and will then cease paying dividends forever. If the required return on this stock is 9 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) Share price
Most questions answered within 3 hours.
-
Why [M(CN)6] is not organometallic even it has metal
to carbon bond too
asked 1 minute ago -
mstar electric has a bond issue outstanding that has a 20 year
life, a $1,000 par...
asked 8 minutes ago -
This is a Business Writing Question:
Common Types of Faulty Sentence Logic:
A. Mixed constructions
B....
asked 9 minutes ago -
Skinner asserts that science, and the common view of science, has
been tarnished. Explain his evidence...
asked 12 minutes ago -
Question 3 (1 point)
Fill in the blank. Speed Car Rental company found that the tire...
asked 12 minutes ago -
An short-seller in Tesla is worried the latest management
earnings forecast is too aggressive and the...
asked 13 minutes ago -
A grocery store's receipts show that Sunday customer purchases
have a skewed distribution with a mean...
asked 19 minutes ago -
A 0.035 mol sample of a weak acid, HA, is dissolved in 437 mL of
water...
asked 30 minutes ago -
a sample of Ar gas has a volume of 6.30 L with an unknown
pressure. the...
asked 31 minutes ago -
The
serum cholesterol levels of a population of kids follow a normal
distribution with mean 155...
asked 51 minutes ago -
han discusses the racist practice of badlands, a bar
in the Castro
district of San Francisco,...
asked 1 hour ago -
A sample of final exam scores is normally distributed with a
mean equal to 25 and...
asked 1 hour ago