Answer: 206.08
Explanation:
Current share price = Annual Dividend x Present value of Annuity at 6% for 10 years
Present value of Annuity = (1-(1/(1+r)n))/r) = (1-(1/(1+0.06)10))/0.06) = 7.360087
Current share price = $28 x 7.360087 = 206.08
09012b. lo 3 19 Apocalyptica Corp. pays a constant $28 dividend on its stock. The company...
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 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?
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 diMdend on Its stock. The company will malntain this dividend for the next 10 years and will then cease paytng dMidends forever Required: If the required return on thls stock Is 9 percent, what Is the current share price? Multiple Choice $181.88 $175.20 $166.86 $163.52 00 0925
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?
Burkhardt Corp. pays a constant $14.70 dividend on its stock. The company will maintain this dividend for the next ten years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price? Share price $_______
7. Stock Valuation. Burkhardt Corp. pays a constant $13.50 dividend on its 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 9.2 percent, what is the current share price?
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 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?
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