We see that the value of the stock is given as equal
to=1.06*(1.117/1.086)+1.06*(1.117/1.086)^2+1.06*(1.117/1.086)^3+1.06*(1.117/1.086)^4+1.06*(1.117/1.086)^5+1.06*(1.117/1.086)^5*1.048/(8.6%-4.8%)=39.42269519
asume Highline Company has paid an annual dividend of $1.06 Analysts are predicting an 11.7% per...
Assume Highline Company has just paid an annual dividend of $ 1.06 Analysts are predicting an 10.7 % per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 4.7 % per year. If Highline's equity cost of capital is 9.3 % per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of...
Assume Highine Company has jst paid an annual dividend of $094 Analysts are predicting an 11.7% per year growth rate in eamings over the next fve years Aher then, Highine's eamings are expected to grow at the ouret industry average of 4.8% per year. If Highline's eqity cost of capital is 8.5% per year and is dividend payout ratio remains constant, for whal price does thee dividend discount model predict Highine stock shodd sel? The value of Highline's stock is...
Assume Highline Company has just paid an annual dividend of $ 1.03. Analysts are predicting an 11.6 % per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 4.9 % per year. If Highline's equity cost of capital is 8.6 % per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of...
Assume Highline Company has just paid an annual dividend of $1.07. Analysts are predicting an 11.3% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.4% per year. If Highline's equity cost of capital is 8.9% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is $...
тогтоосон. огирлы т опе оvок (оору) core: 0 of 1 pt 15 of 18 (14 complete) HW Score: 76.39%, 13.75 of 18 7-20 (similar to) Question Help Assume Highline Company has just paid an annual dividend of $1.05. Analysts are predicting an 11.6% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.6% per year. If Highline's equity cost of capital is 8.6% per...
Assume Highline Company has just paid an annual dividend of $0.96. Analysts are predicting an 11% per year growth rate in earnings over the next five years. After then, Highline’s earnings are expected to grow at the current industry average of 5.2% per year. If Highline’s equity cost of capital is 8.5% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell?Complete the steps below using cell references to...
Colgate-Palmolive Company has just paid an annual dividend of $ 1.72 . Analysts are predicting dividends to grow by $ 0.13 per year over the next five years. After then, Colgate's earnings are expected to grow 5.1 % per year, and its dividend payout rate will remain constant. If Colgate's equity cost of capital is 8.6 % per year, what price does the dividend-discount model predict Colgate stock should sell for today? The price per share is ?
Maynard Steel plans to pay a dividend of $ 2.92 this year. The company has an expected earnings growth rate of 3.6 % per year and an equity cost of capital of 9.2 %. a. Assuming Maynard's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase shares, estimate Maynard's share price. (Round to the nearest cent.) b. Suppose Maynard decides to pay a dividend of $ 0.94 this year and use...
Maynard Steel plans to pay a dividend of $3.02 this year. The company has an expected earnings growth rate of 3.5% per year and an equity cost of capital of 10.4%. a. Assuming Maynard's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase shares, estimate Maynard's share price. b. Suppose Maynard decides to pay a dividend of $1.04 this year and use the remaining $1.98 per share to repurchase shares. If...
Maynard Steel plans to pay a dividend of $3.00 this year. The company has an expected earnings growth rate of 4.0% per year and an equity cost of capital of 10.0%. a. Assuming Maynard's dividend payout rate and expected growth rate remain constant, and that the firm does not issue or repurchase shares, estimate Maynard's share price. b. Suppose Maynard decides to pay a dividend of $1.00 this year and use the remaining $2.00 per share to repurchase shares. If...