Question

Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 26 percent...

Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 26 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 12 percent and the company just paid a dividend of $1.90, 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 $   
0 0
Add a comment Improve this question Transcribed image text
Answer #1

=+B48*1.06 B49 A В C Present value 45 PVIF @ 12% 46 D1 0.893$ $ 2.39 2.14 47 D2 0.797 $ 0.712 $ $ 2.40 3.02 48 D3 $ 3.80 2.71

*Please rate thumbs up

Add a comment
Know the answer?
Add Answer to:
Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 26 percent...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent...

    Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 14 percent and the company just paid a dividend of $2.50, 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 $

  • Marcel Co. is growing quickly. Dividends are expected to grow at a 18 percent rate for...

    Marcel Co. is growing quickly. Dividends are expected to grow at a 18 percent rate for the next 3 years, with the growth rate falling off to a constant 4 percent thereafter.    Required: If the required return is 8 percent and the company just paid a $1.90 dividend. what is the current share price? (Do not round your intermediate calculations.)

  • Fuji Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the...

    Fuji Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 12 percent and the company just paid a dividend of $3.25, 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

  • Stock Valuation Fuji Co. is growing quickly. Dividends are expected to grow at a rate of...

    Stock Valuation Fuji Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 12 percent and the company just paid a dividend of $1.30, 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

  • Synovec Co. is growing quickly. Dividends are expected to growat a rate of 22 percent...

    Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 12 percent, and the company just paid a dividend of $3.25, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 

  • Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 31 percent...

    Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 31 percent for the next three years, with the growth rate falling off to a constant 7.1 percent thereafter. If the required return is 12 percent and the company just paid a dividend of $2.55, 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

  • Fuji Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter.

    Fuji Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 11 percent and the company just paid a dividend of $3.10, 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 = _______ 

  • Yang Corp. is growing quickly. Dividends are expected to grow at a rate of 29 percent...

    Yang Corp. is growing quickly. Dividends are expected to grow at a rate of 29 percent for the next three years, with the growth rate falling off to a constant 7.3 percent thereafter. Required: If the required return is 15 percent and the company just paid a $3.40 dividend, what is the current share price? (Hint: Calculate the first four dividends.) (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current share price $

  • Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 32 percent...

    Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 32 percent for the next three years, with the growth rate falling off to a constant 7.2 percent thereafter If the required return is 14 percent and the company just paid a dividend of $3.35, what is the current share price? (Hint Calculate the first four dividends.) (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price

  • Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 31 percent...

    Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 31 percent for the next three years, with the growth rate falling off to a constant 6.6 percent thereafter. If the required return is 12 percent and the company just paid a dividend of $2.65, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT