Homework Answers
Current value=D1/(Equity cost of capital-Growth rate)
=1.55/(0.08-0.03)
which is equal to
=$31
Add Answer to:
Cook Pharmaceuticals plans to pay $1.55 per share in dividends in the coming year. If its...
DFB, Inc. expects earnings this year of $4.49 per share, and it plans to pay a...
DFB, Inc. expects earnings this year of $4.49 per share, and it plans to pay a $2.55 dividend to shareholders at that time (one year from now). DFB will retain $1.94 per share of its earnings to reinvest in new projects that have an expected return of 15.4% per year. Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares. a. What...
Company XYZ will pay in exactly one year $4 in dividends per share to its common...
Company XYZ will pay in exactly one year $4 in dividends per share to its common stock shareholders. In exactly one year it will pay $2 in didends per Share to holders of its preferred stock. The flotation costs on a per share basis for common stock are 57 and for preferred stock are 52. Common stock dividends are expected to grow 5% each year preferred stock dividends will not change. The company can issue $1,000 par value, 12% coupon,...
Bennoch Corporation is expected to pay $2 dividends per share next year (year 1) to its...
Bennoch Corporation is expected to pay $2 dividends per share next year (year 1) to its shareholders. Its required rate of return on equity is 10%. Dividends are expected to grow at 5% per year for year 2 through year 3, and then slow down to a steady long-term growth rate of 2% for year 4 and beyond. What is the fair value of its stock price today?
DFB, Inc. expects earnings this year of $4.02 per share, and it plans to pay a $2.27 dividend to shareholders at that t...
DFB, Inc. expects earnings this year of $4.02 per share, and it plans to pay a $2.27 dividend to shareholders at that time (one year from now). DFB will retain $1.75 per share of its earnings to reinvest in new projects that have an expected return of 14.6% per year. Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares. a. What...
halliford corporation expects to have earnings this coming year of $3.29 per share. halliford plans to...
halliford corporation expects to have earnings this coming year of $3.29 per share. halliford plans to retain all of its earnings for the next two years. for the subsequent two years, the firm will retain 52% of its earnings. it will then retain20 of its earnings from that point onward. each year, retained earnings will be invested in new projects with an expected return of 21.39 % per year. any earnings that are not retained will be paid out as...
Halliford Corporation expects to have earnings this coming year of $2.906 per share. Haliford plans to...
Halliford Corporation expects to have earnings this coming year of $2.906 per share. Haliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain 45% of its earnings. It will retain 17% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 19.7% per year. Any earnings that are not retained will be paid out as...
Spacefood Products will pay a dividend of $ 2.15 per share this year. It is expected...
Spacefood Products will pay a dividend of $ 2.15 per share this year. It is expected that this dividend will grow by 7% per year each year in the future. What will be the current value of a single share ofSpacefood's stock if the firm's equity cost of capital is 13%?
Halliford Corporation expects to have earnings this coming year of $3.07 per share. Halliford plans to...
Halliford Corporation expects to have earnings this coming year of $3.07 per share. Halliford plans to retain all of its earnings for the next two years. For the subsequent two years, the firm will retain 51% of its earnings. It will then retain 20% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 20.86% per year. Any earnings that are not retained will be paid out as...
Halliford Corporation expects to have earnings this coming year of $2.619 per share. Halliford plans to...
Halliford Corporation expects to have earnings this coming year of $2.619 per share. Halliford plans to retain all of its earings for the next two years. Then, for the subsequent two years, the firm will retain 52% of its earnings. It will retain 17% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 24.5% per year. Any earnings that are not retained will be paid out as...
Halliford Corporation expects to have earnings this coming year of $3.092 per share. Halliford plans to...
Halliford Corporation expects to have earnings this coming year of $3.092 per share. Halliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain 53% of its earnings. It will retain 20% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 23.7% per year. Any earnings that are not retained will be paid out as...
DFB, Inc. expects earnings this year of $4.49 per share, and it plans to pay a $2.55 dividend to shareholders at that time (one year from now). DFB will retain $1.94 per share of its earnings to reinvest in new projects that have an expected return of 15.4% per year. Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares. a. What...
Company XYZ will pay in exactly one year $4 in dividends per share to its common stock shareholders. In exactly one year it will pay $2 in didends per Share to holders of its preferred stock. The flotation costs on a per share basis for common stock are 57 and for preferred stock are 52. Common stock dividends are expected to grow 5% each year preferred stock dividends will not change. The company can issue $1,000 par value, 12% coupon,...
DFB, Inc. expects earnings this year of $4.02 per share, and it plans to pay a $2.27 dividend to shareholders at that time (one year from now). DFB will retain $1.75 per share of its earnings to reinvest in new projects that have an expected return of 14.6% per year. Suppose DFB will maintain the same dividend payout rate, retention rate, and return on new investments in the future and will not change its number of outstanding shares. a. What...
Halliford Corporation expects to have earnings this coming year of $2.906 per share. Haliford plans to retain all of its earnings for the next two years. Then, for the subsequent two years, the firm will retain 45% of its earnings. It will retain 17% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 19.7% per year. Any earnings that are not retained will be paid out as...
Halliford Corporation expects to have earnings this coming year of $2.619 per share. Halliford plans to retain all of its earings for the next two years. Then, for the subsequent two years, the firm will retain 52% of its earnings. It will retain 17% of its earnings from that point onward. Each year, retained earnings will be invested in new projects with an expected return of 24.5% per year. Any earnings that are not retained will be paid out as...
Most questions answered within 3 hours.
-
The following information for the past year is available from
Thinnews Co., a company that uses...
asked 50 seconds from now -
Suppose you work for Allstate, and insurance company and the
data shows the following for auto...
asked 49 seconds from now -
The fresh fruit market and frozen dinner market are
currently in equilibrium. Fresh fruit is a...
asked 4 minutes ago -
(1 point) Golf-course designers have become concerned that old
courses are becoming obsolete since new technology...
asked 2 minutes ago -
The active retelling of dominant cultural stories is known
preserves which concept?
hegemony
heterodoxy
doxa
myth
asked 6 minutes ago -
1. Which of the following statements is true of money?
It is anything accepted in exchange...
asked 6 minutes ago -
BASED ON THE AIRBNB, ETSY, UBER: GROWING FROM ONE THOUSAND TO
ONE MILLION CUSTOMERS HARVARD CASE:...
asked 32 minutes ago -
Which of these methods cause sterilization?
Autoclaving
Dry heat
Gamma irradiation
Ethylene oxide
A.
Yes
No...
asked 38 minutes ago -
A biologist wishes to estimate the effect of an antibiotic on
the growth of a particular...
asked 46 minutes ago -
O’Deesha Company has the following information available:
Quality engineering of
products
$20,000
Quality training of
employees &n
asked 53 minutes ago -
a) Draw two water molecules.
b) Clearly name and label the type of bond that exists...
asked 2 hours ago -
C - Language
Write a loop that sets each array element to the sum of itself...
asked 3 hours ago