KellyAnne Public Relations just paid an annual dividend of $1.27 on its common stock and increases...
KellyAnne Public Relations just paid an annual dividend of $1.27 on its common stock and increases its dividend by 3.4 percent annually. What is the rate of return on this stock if the current stock price is $38.56 a share? Multiple Choice 6.81 percent 7.87 percent 7.04 percent 7.69 percent 7.82 percent
Homework Answers
Ans 6.81 percent
| P0 = | Price of Share |
| D1 = | Current Dividend |
| Ke = | Cost of Equity |
| g = | growth rate |
| P0 = | D1 / (Ke - g) |
| 38.56 = | 1.3132 / (Ke - 3.4%) |
| Ke - 3.4% = | 1.3132/ 38.56 |
| Ke - 3.4% = | 3.41% |
| Ke = | 6.81% |
| D1 = | D0* (1 + g) |
| D1 = | 1.27* (1 + 3.4%) |
| D1 = | 1.3132 |
Add Answer to:
KellyAnne Public Relations just paid an annual dividend of $1.27
on its common stock and increases...
Judy's Boutique just paid an annual dividend of $2.65 on its common stock. The firm increases...
Judy's Boutique just paid an annual dividend of $2.65 on its common stock. The firm increases its dividend by 3.40 percent annually. What is the rate of return on this stock if the current stock price is $39.64 a share?
Southern Union recently paid a $2.50 annual dividend on its common stock. This dividend increases at...
Southern Union recently paid a $2.50 annual dividend on its common stock. This dividend increases at a rate of 4.5 percent per year. The stock is currently selling for $30 a share. What is the required rate of return? Select one: a. 11.60 percent b. 12.83 percent 10.53 percent d 14.07 percent e. 13.21 percent
Company Alpha common stock sells for $39.50 a share and pays an annual dividend that increases...
Company Alpha common stock sells for $39.50 a share and pays an annual dividend that increases by 4 percent annually. The market rate of return on this stock is 8.45 percent. What is the amount of the last dividend paid?
E. $3.44 10. Shares of Hot Donuts common stock are currently selling for $32.35. The last annual dividend paid was $...
E. $3.44 10. Shares of Hot Donuts common stock are currently selling for $32.35. The last annual dividend paid was $1.5 per share and the market rate of return is 12 percent. At what rate is the dividend growing? A. 4.71 percent B. 5.13 percent C. 6.61 percent D. 7.04 percent E. 8.64 percent 11. Combined Communications is a new firm in a rapidly growing industry The company is planning on increasing its annual dividend by 15 percent a year...
This morning you purchased a stock that just paid an annual dividend of $1.70 per share.
This morning you purchased a stock that just paid an annual dividend of $1.70 per share. You require a return of 9.5 percent and the dividend will increase at an annual growth rate of 2.6 percent. If you sell this stock in three years, what will your capital gain be? Multiple Choice $2.31 $2.60 $2.02 $2.66 Fowler is expected to pay a dividend of $1.53 one year from today and $1.68 two years from today. The company has a dividend payout ratio of 45 percent and...
Ground Chuck Processing just paid its annual dividend of $1.25 per share. The firm recently announced...
Ground Chuck Processing just paid its annual dividend of $1.25 per share. The firm recently announced that all future dividends will be increased by 3 percent annually. What is one share of this stock worth to you if you require a rate of return of 11.5 percent? Multiple Choice O $13.52 O $15.92 O $15.05 O $14.89
OMG Corporation just paid a $2.90 annual dividend on each share. It is planning on increasing...
OMG Corporation just paid a $2.90 annual dividend on each share. It is planning on increasing its dividend by 15 percent a year for the next 4 years. The corporation will then decrease the growth rate to a rate of 6 percent per year, and keep it that way indefinitely. The required rate of return is 8.40 percent. Calculate the current value of one share of this corporation's stock. Multiple Choice $226.92 $162.24 $178.62 $224.02 $175.72
roy's welding supplies common stock sells for $42 a share in Paisan annual dividend that increases...
roy's welding supplies common stock sells for $42 a share in Paisan annual dividend that increases by 4.5% annually. The market rate of return on the stock is 9.20%, what is the amount of the last dividend paid?
Sketchers just paid its annual dividend of $1.45 a share. All future dividends will be increased...
Sketchers just paid its annual dividend of $1.45 a share. All future dividends will be increased by 3.8 percent annually. What is one share of this stock worth if you require a 12 percent rate of return?
Mariota Corp. just paid a dividend of $4.25 per share on its stock. The dividend growth...
Mariota Corp. just paid a dividend of $4.25 per share on its stock. The dividend growth rate is expected to be 3.25 forever and investors require a return of 13.5 percent on this stock. What will the stock price be in 13 years? Multiple Choice $57.16 $12.51 $64.88 $49.26
Southern Union recently paid a $2.50 annual dividend on its common stock. This dividend increases at a rate of 4.5 percent per year. The stock is currently selling for $30 a share. What is the required rate of return? Select one: a. 11.60 percent b. 12.83 percent 10.53 percent d 14.07 percent e. 13.21 percent
E. $3.44 10. Shares of Hot Donuts common stock are currently selling for $32.35. The last annual dividend paid was $1.5 per share and the market rate of return is 12 percent. At what rate is the dividend growing? A. 4.71 percent B. 5.13 percent C. 6.61 percent D. 7.04 percent E. 8.64 percent 11. Combined Communications is a new firm in a rapidly growing industry The company is planning on increasing its annual dividend by 15 percent a year...
Ground Chuck Processing just paid its annual dividend of $1.25 per share. The firm recently announced that all future dividends will be increased by 3 percent annually. What is one share of this stock worth to you if you require a rate of return of 11.5 percent? Multiple Choice O $13.52 O $15.92 O $15.05 O $14.89
Mariota Corp. just paid a dividend of $4.25 per share on its stock. The dividend growth rate is expected to be 3.25 forever and investors require a return of 13.5 percent on this stock. What will the stock price be in 13 years? Multiple Choice $57.16 $12.51 $64.88 $49.26
Most questions answered within 3 hours.
-
Pyruvate Kinase, an allosteric enzyme, accelerates the
conversion of phosphoenolpyruvate to pyruvate.
1) Draw curves describing...
asked 1 minute from now -
question 1
Which of the following is an example of a bottom-up technique
for developing promotional...
asked 15 minutes ago -
1)In FM modulation, what aspect of the carrier is being
modulated?
2)Explain in your own words,...
asked 12 minutes ago -
Andromeda Galaxy, M31, is considered a sister galaxy to Milky
Way galaxy. One similarirty is their...
asked 17 minutes ago -
How does temperature affect ADH during enzyme
kinetics?
asked 25 minutes ago -
A $1000 par value convertible bond has a conversion price of
$25. It is currently selling...
asked 33 minutes ago -
Write a java program that declares 10 element array (of type
integers), creates and initializes the...
asked 31 minutes ago -
import java.util.Arrays;
import java.util.Random;
import java.util.Scanner;
/**
* TODO Write a summary of the role of...
asked 36 minutes ago -
Sodium hydroxide is a strong base and ammonium hydroxide is a
weak base. Which of the...
asked 42 minutes ago -
Glycerol, C3H8O3, is a substance used extensively in the
manufacture of cosmetics, foodstuffs, antifreeze, and plastics....
asked 45 minutes ago -
After moving through Chapter 1 of our textbook, what is a social
issue/area of concern that...
asked 45 minutes ago -
Please complete the implementation of the four functions IN
C.
//************************************************************************************/
//
// countNumberofOnes
//
//...
asked 1 hour ago