Dividend paid next year = D1 = $1.75
Growth rate of dividend = g = -1.5%
Rate of return = r = 14%
According to Gordon's Growth model,
Price of Stock now = P0 = D1/(r - g) = 1.75/(0.14 - (-0.015)) = $11.29
6- Sessler Manufacturers made two announcements concerning its common stock today. First, the company announced that...
Sessler Manufacturers made two announcements concerning its common stock today. First, the company announced that the next annual dividend, to be paid in three days, will be $1.65 a share. Secondly, all dividends after that will increase by 1.5 percent for the foreseeable future. What is the maximum amount you should pay to purchase a share of this stock today if you require a 16 percent rate of return?
a company made two announcements concerning its common stock today. first, the company announced that the next annual dividend will be $2.45 a share. secondly, all dividends after that will decrease by 3.5 percent annually. what is the maximum amount you should Pay if you require a a 7 percent rate if return? 16.29, 17.64, 18.96, 23.33
Angelina's made two announcements concerning its common stock today. First, the company announced that its next annual dividend, which will be paid a year from today, has been set at $2.16 a share. Secondly, the company announced that all future dividends will increase by 4% annually. Angelina's stock has a beta of 1.15, the risk free rate is 1.95%, and the expected return on the market is 8.95%. What should the current price of Angelina's stock be? $21.60 $22.46 $26.21...
5- Miller Brothers Hardware paid an annual dividend of $0.95 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you reauire a 13 percent rate of return. how much are vou willing to pav to purchase one share of this stock todav?
6 UMD Corp has bonds on the market with 15 ye is 5.5%, a par value of $1,000 and a current prie payment. What is the coupon rate of the bonds? arket with 15 years to maturity, the current yield to maturity nd a current price of $960. The bonds makes semi-annual 2.25% Uow 2.55% 4.75% 5.10% 5.55% The dividend growth model: I assumes that dividends increase at a constant rate forever II. can be used to compute a stock...
Johnson Bro's paid an annual dividend of $1.05 per share last month. Today the company announced that future dividends will be increasing by 2.4 percent annually. If you require a 13 percent rate of return, how much are you willing to pay to purchase one of this stock today?
Miller Brothers Hardware paid an annual dividend of $1.75 per share last month. Today, the company announced that future dividends will be increasing by 3.00 percent annually. If you require a 8.7 percent rate of return, how much are you willing to pay to purchase one share of this stock today? $29.87 O $58.33 O $60.08 O $31.62 O $33.37
Miller Brothers Hardware paid an annual dividend of $1.75 per share last month. Today, the company announced that future dividends will be increasing by 3.60 percent annually. If you require a 8.1 percent rate of return, how much are you willing to pay to purchase one share of this stock today? O $38.54 O $50.36 O $48.61 O $40.29 O $42.04
Miller Brothers Hardware paid an annual dividend of $0.95 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 13 percent rate of return, how much are you willing to pay to purchase one share of this stock today?
Wii U announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $1 a share. The following dividends will be $1.2, and $1.37 a share annually for the following two years, respectively. After that, dividends are projected to increase by 4 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 12 percent?