Homework Answers
Current value=Annual dividend/equity cost of capital
=1.5/0.09
which is equal to
=$16.67(Approx).
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no
growth industries presently pays an annual dividend of $1.50 per
share and it is expected...
NoGrowth Industries presently pays an annual dividend of $1.80per share and it is expected that these...
NoGrowth Industries presently pays an annual dividend of $1.80per share and it is expected that these dividend payments will continue indefinitely. If NoGrowth's equity cost of capital is9%,then the value of a share of NoGrowth's stock is closest to: A. $24 B. $22 C. $20 D. $16
7.) Von Bora Corporation (VBC) is expected to pay a $ 3.00 dividend at the end...
7.) Von Bora Corporation (VBC) is expected to pay a $ 3.00 dividend at the end of this year. If you expect VBC's dividend to grow by 6% per year forever and VBC's equity cost of capital is 10%, then the value of a share of VBS stock is closest to: 8.) NoGrowth Industries presently pays an annual dividend of $ 1.00 per share and it is expected that these dividend payments will continue indefinitely. If NoGrowth's equity cost of...
Exercise 17.6 Panhandle Industries, Inc., currently pays an annual common stock dividend of $8.80 per share....
Exercise 17.6 Panhandle Industries, Inc., currently pays an annual common stock dividend of $8.80 per share. The company’s dividend has grown steadily over the past 10 years at 8 percent per year; this growth trend is expected to continue for the foreseeable future. The company’s present dividend payout ratio, also expected to continue, is 40 percent. In addition, the stock presently sells at eight times current earnings— that is, its “multiple” is 8. What is the company’s cost of equity...
Matilda Industries pays a dividend of $1.80 per share and is expected to pay this amount...
Matilda Industries pays a dividend of $1.80 per share and is expected to pay this amount indefinitely. If Matilda's equity cost of capital is 14%, which of the following would be expected to be closest to Matilda's stock price? A. $10.29 B. $7.72 C. $16.08 D. $12.86
The James River Co. pays an annual dividend of $1.50 per share on its common stock....
The James River Co. pays an annual dividend of $1.50 per share on its common stock. This dividend amount has been constant for the past 15 years and is expected to remain constant in the future. Given this, one share of James River Co. stock today: A. is basically worthless as it offers no growth potential. B. has a market value equal to the present value of $1.50 paid one year from today. C. is valued as...
QUESTION 17 1 p Microsoft presently pays no dividend. You anticipate Microsoft will pay an annual...
QUESTION 17 1 p Microsoft presently pays no dividend. You anticipate Microsoft will pay an annual dividend of $0.60 per share two years from today and you expect dividends to grow by 4% per year thereafter. IF Microsoft's equity cost of capital is 12%, then the value of a share of Microosfoft today is: O $5.00 O O $6.70 O $6.25 O $6.90 O QUESTION 18 1 p You expect KT Industries (KTI) will have earnings per share of $3...
Whidbey Industries just paid an annual dividend of $1.50 a share. The market price of the...
Whidbey Industries just paid an annual dividend of $1.50 a share. The market price of the stock is $30 and the growth rate is 5 percent. What is the firm’s cost of equity? a: 5% b: 10.25% c: 5.25% d: 10%
A company's stock pays an annual dividend that is expected to increase by 9% annually. The...
A company's stock pays an annual dividend that is expected to increase by 9% annually. The stock commands a market rate of return of 12% and sells for $60.50 a share. What is the expected amount of the next dividend to be paid on the stock? Battery Co. will pay an annual dividend of $2.08 a share on its common stock next year. Last week, the company paid a dividend of $2.00 a share. The company adheres to a constant...
a compny has a stock which costs $43.25 per share and pays a dividend of $2.70...
a
compny has a stock which costs $43.25 per share and pays a dividend
of $2.70 per share this year. the company's cost of equity is 9%.
what is the expected annual growth rate of the company's dividends?
O A. 8.28% OB. 5.52% OC. 2.76% OD. 11.04%
ARTIC Mining Ltd.'s stock is expected to pay an annual dividend of $0.80 per share indefinitely. If...
ARTIC Mining Ltd.'s stock is expected to pay an annual dividend of $0.80 per share indefinitely. If the stock is currently trading at a price of $18.90 per share, and the firm's equity cost of capital is 6.4%, what is the price per share that investors should be expected to pay in 5 years (into the future)?
Matilda Industries pays a dividend of $1.80 per share and is expected to pay this amount indefinitely. If Matilda's equity cost of capital is 14%, which of the following would be expected to be closest to Matilda's stock price? A. $10.29 B. $7.72 C. $16.08 D. $12.86
QUESTION 17 1 p Microsoft presently pays no dividend. You anticipate Microsoft will pay an annual dividend of $0.60 per share two years from today and you expect dividends to grow by 4% per year thereafter. IF Microsoft's equity cost of capital is 12%, then the value of a share of Microosfoft today is: O $5.00 O O $6.70 O $6.25 O $6.90 O QUESTION 18 1 p You expect KT Industries (KTI) will have earnings per share of $3...
a
compny has a stock which costs $43.25 per share and pays a dividend
of $2.70 per share this year. the company's cost of equity is 9%.
what is the expected annual growth rate of the company's dividends?
O A. 8.28% OB. 5.52% OC. 2.76% OD. 11.04%
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