Sam Inc. has $33000 dollars that it wishes to pay out as dividends, and a cost...
Sam Inc. has $33000 dollars that it wishes to pay out as dividends, and a cost of equity of 0.23. If it pays out $25000 in dividends today, what dividend should they pay 3 year from today to make shareholders indifferent between this dividend scheme and one where shareholders get all of the cash today?
Homework Answers
Hence, Indifference dividend payment in 3 years was $46,522
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Sam Inc. has $33000 dollars that it wishes to pay out as
dividends, and a cost...
David has $23000 dollars that it wishes to pay out as dividends, and a cost of...
David has $23000 dollars that it wishes to pay out as dividends, and a cost of equity of 0.26. If it pays out $17000 in dividends today, what dividend should they pay 1 year from today to make shareholders indifferent between this dividend scheme and one where shareholders get all of the cash today?
XYZ Corp. has $46 million dollars that it wishes to pay out as dividends, and a...
XYZ Corp. has $46 million dollars that it wishes to pay out as dividends, and a cost of equity of 0.21. If it pays out $18 million in dividends today, what dividend should they pay 1 year from today to make shareholders indifferent between this dividend scheme and one where shareholders get all of the cash today?
XYZ Corp. has $34 million dollars that it wishes to pay out as dividends, and a...
XYZ Corp. has $34 million dollars that it wishes to pay out as dividends, and a cost of equity of 0.22. If it pays out $12 million in dividends today, what dividend should they pay 1 year from today to make shareholders indifferent between this dividend scheme and one where shareholders get all of the cash today?
XYZ Corp. has $47 million dollars that it wishes to pay out as dividends, and a...
XYZ Corp. has $47 million dollars that it wishes to pay out as dividends, and a cost of equity of 0.09. If it pays out $20 million in dividends today, what dividend should they pay 1 year from today to make shareholders indifferent between this dividend scheme and one where shareholders get all of the cash today?
markets tomorrow Question 2 1 pts XYZ Corp. has $42 million dollars that it wishes to...
markets tomorrow Question 2 1 pts XYZ Corp. has $42 million dollars that it wishes to pay out as dividends, and a cost of equity of 0.20. If it pays out $17 million in dividends today, what dividend should they pay 1 year from today to make shareholders indifferent between this dividend scheme and one where shareholders get all of the cash today?
Palo Alto Enterprises has $200,000 in cash. They wish to invest the money in Treasury bills...
Palo Alto Enterprises has $200,000 in cash. They wish to invest the money in Treasury bills at 5% and use the returns to pay dividends to shareholders after a year. Alternatively they can pay a dividend and allow shareholders to make the investment. If corporate tax rates are 30%, which option will shareholders prefer in perfect capital markets? Select one: A. immediate cash dividend B. dividend after one year C. prefer half from each source D. indifferent between options
Peterson Packaging Inc does not currently pay dividends. The company will start with a $1.25 dividend...
Peterson Packaging Inc does not currently pay dividends. The company will start with a $1.25 dividend at the end of year 3 and grow it by 9% for each of the next 6 years. After 6 years of growth, it will fix its dividends at $2.27 forever. If you want a 15% return on this stock, what should you pay today given this future dividend stream?
Peterson Packaging Inc. does not currently pay dividends. The company will start with a $0.60 dividend...
Peterson Packaging Inc. does not currently pay dividends. The company will start with a $0.60 dividend at the end of year three and grow it by 10% for each of the next six years. After six years of growth, it will fix its dividend at $1.18 forever. If you want a 14% return on this stock, what should you pay today given this future dividend stream?
Peterson packaging inc does not currently pay dividends the company will start paying 1.25 dividend at...
Peterson packaging inc does not currently pay dividends the company will start paying 1.25 dividend at the end of year 3 and grow it by 10% for 6 years after 6 years it will fix to 2.44 dividend forever if you want 15% return what should you pay for it today?
Peterson Packaging Inc. does not currently pay dividends. The company will start with a $1.00 dividend...
Peterson Packaging Inc. does not currently pay dividends. The company will start with a $1.00 dividend at the end of year three and grow it by 9% for each of the next six years. After six years of growth, it will fix its dividend at $1.84 forever. If you want a 15% return on this stock, what should you pay today given this future dividend stream? but the ses parties to analyse the end you to be even the man...
markets tomorrow Question 2 1 pts XYZ Corp. has $42 million dollars that it wishes to pay out as dividends, and a cost of equity of 0.20. If it pays out $17 million in dividends today, what dividend should they pay 1 year from today to make shareholders indifferent between this dividend scheme and one where shareholders get all of the cash today?
Peterson Packaging Inc. does not currently pay dividends. The company will start with a $1.00 dividend at the end of year three and grow it by 9% for each of the next six years. After six years of growth, it will fix its dividend at $1.84 forever. If you want a 15% return on this stock, what should you pay today given this future dividend stream? but the ses parties to analyse the end you to be even the man...
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