CX Enterprises has the following expected dividends: $1 n one year, $1.30 in 2 years, and $1.50 in 3 years. After that its dividends are expected to grow at 2% per year forever (so that year 4's dividend will be 2% more than $1.50 and so on). If CX's equity cost of capital is 1596, what is the current price of its stock?
The current price of the stock is $______.
Homework Answers
Value after 3 years=(D3*Growth Rate)/(Cost of capital-Growth Rate)
=(1.5*1.02)/(0.15-0.02)
=$11.76923077
Hence current price=Future dividends*Present value of discounting factor(rate%,time period)
=1/1.15+1.3/1.15^2+1.5/1.15^3+$11.76923077/1.15^3
=$10.58(Approx).
Add Answer to:
CX Enterprises has the following expected dividends: $1 n one year, $1.30 in 2 years, and...
CX Enterprises has the following expected dividends: $1.05 in one year, $1.17 in two years, and...
CX Enterprises has the following expected dividends: $1.05 in one year, $1.17 in two years, and $1.28 in three years. After that, its dividends are expected to grow at 4.1% per year forever (so that year 4's dividend will be 4.1% more than $1.28 and so on). If CX's equity cost of capital is 12%, what is the current price of its stock? The price of the stock will be found to the nearest cent.)
CX Enterprises has the following expected dividends: $1.09 in one year, $1.21 in two years, and...
CX Enterprises has the following expected dividends: $1.09 in one year, $1.21 in two years, and $1.32 in three years. After that, its dividends are expected to grow at 3.7% per year forever (so that year four's dividend will be 3.7% more than $1.32 and so on). If CX's equity cost of capital is 12.1%, what is the current price of its stock? The price of the stock will be $ (Round to the nearest cent.)
CX Enterprises has the following expected dividends: $1.11 in one year, $1.22 in two years, and $1.27 in three years. A...
CX Enterprises has the following expected dividends: $1.11 in one year, $1.22 in two years, and $1.27 in three years. After that, its dividends are expected to grow at 4.3% per year forever (so that year four's dividend will be 4.3% more than $1.27 and so on). If CX's equity cost of capital is 12.4%, what is the current price of its stock? The price of the stock will be $ . (Round to the nearest cent.)
CX Enterprises has the following expected dividends: $1 in one year, $1.15 in two years, and...
CX Enterprises has the following expected dividends: $1 in one year, $1.15 in two years, and $1.25 in three years. After that, its dividends are expected to grow at 4% per year forever (so that year 4’s dividend will be 4% more than $1.25 and so on). If CX’s equity cost of capital is 12%, what is the current price of its stock and what is the dividend in 4 years?
I HAVE THE SOLUTION FOR THE QUESTION. BUT DIDN'T UNDERSTAND FORMULA USED CAN YOU PROVIDE THE...
I HAVE THE SOLUTION FOR THE QUESTION. BUT DIDN'T UNDERSTAND
FORMULA USED CAN YOU PROVIDE THE FORMULA AND EXPLAIN IT.
19. CX Enterprises has the following expected dividends: $1 in one year, $1.15 in two years, and $1.25 in three years. After that, its dividends are expected to grow at 4% per year forever (so that year four's dividend will be 4% more than $1.25 and so on). If CX's equity cost of capital is 12%, what is the current...
CX Enterprises as the lowing expected be more than 132 and so on C's $19 in...
CX Enterprises as the lowing expected be more than 132 and so on C's $19 in one year $1.25iny a and in the years. Aner at cost of capitis what the current price of its stock? de r weted logo per year forever so that year's dividend w The price of the wo n de nt)
The Homie Corporation has the following expected dividends: $1.10 in one year, $1.25 in two years,...
The Homie Corporation has the following expected dividends: $1.10 in one year, $1.25 in two years, and $1.35 in three years. After that dividends are expected to grow 4% per year forever. If the equity cost of capital is 10%, what is the current price of the stock?
CH7 1. Laurel Enterprises expects earnings next year of $3.84 per share and has a 50%...
CH7 1. Laurel Enterprises expects earnings next year of $3.84 per share and has a 50% retention rate, which it plans to keep constant. Its equity cost of capital is 1 1%, which is also its expected return on new investment. Its earnings are expected to grow forever at a rate of 5.5% per year If its next dividend is due in one year, what do you estimate the firm's current stock price to be? 2, Laurel Enterprises expects earnings...
1) A7X Corp. just paid a dividend of $1.30 per share. The dividends are expected to...
1) A7X Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 30 percent for the next 9 years and then level off to a growth rate of 9 percent indefinitely. If the required return is 13 percent, what is the price of the stock today? 2) Burnett Corp. pays a constant $19 dividend on its stock. The company will maintain this dividend for the next 6 years and will then cease paying dividends...
A stock is expected to pay annual dividends forever. The first dividend is expected in 1...
A stock is expected to pay annual dividends forever. The first dividend is expected in 1 year and all subsequent annual dividends are expected to grow at a constant rate annually. The dividend expected in 2 years from today is 19.55 dollars and the dividend expected in 13 years from today is expected to be 30.03 dollars. What is the dividend expected to be in 8 years from today? Number If 1) the expected return for Litchfield Design stock is...
CX Enterprises has the following expected dividends: $1.05 in one year, $1.17 in two years, and $1.28 in three years. After that, its dividends are expected to grow at 4.1% per year forever (so that year 4's dividend will be 4.1% more than $1.28 and so on). If CX's equity cost of capital is 12%, what is the current price of its stock? The price of the stock will be found to the nearest cent.)
CX Enterprises has the following expected dividends: $1.09 in one year, $1.21 in two years, and $1.32 in three years. After that, its dividends are expected to grow at 3.7% per year forever (so that year four's dividend will be 3.7% more than $1.32 and so on). If CX's equity cost of capital is 12.1%, what is the current price of its stock? The price of the stock will be $ (Round to the nearest cent.)
CX Enterprises has the following expected dividends: $1.11 in one year, $1.22 in two years, and $1.27 in three years. After that, its dividends are expected to grow at 4.3% per year forever (so that year four's dividend will be 4.3% more than $1.27 and so on). If CX's equity cost of capital is 12.4%, what is the current price of its stock? The price of the stock will be $ . (Round to the nearest cent.)
I HAVE THE SOLUTION FOR THE QUESTION. BUT DIDN'T UNDERSTAND
FORMULA USED CAN YOU PROVIDE THE FORMULA AND EXPLAIN IT.
19. CX Enterprises has the following expected dividends: $1 in one year, $1.15 in two years, and $1.25 in three years. After that, its dividends are expected to grow at 4% per year forever (so that year four's dividend will be 4% more than $1.25 and so on). If CX's equity cost of capital is 12%, what is the current...
CX Enterprises as the lowing expected be more than 132 and so on C's $19 in one year $1.25iny a and in the years. Aner at cost of capitis what the current price of its stock? de r weted logo per year forever so that year's dividend w The price of the wo n de nt)
CH7 1. Laurel Enterprises expects earnings next year of $3.84 per share and has a 50% retention rate, which it plans to keep constant. Its equity cost of capital is 1 1%, which is also its expected return on new investment. Its earnings are expected to grow forever at a rate of 5.5% per year If its next dividend is due in one year, what do you estimate the firm's current stock price to be? 2, Laurel Enterprises expects earnings...
A stock is expected to pay annual dividends forever. The first dividend is expected in 1 year and all subsequent annual dividends are expected to grow at a constant rate annually. The dividend expected in 2 years from today is 19.55 dollars and the dividend expected in 13 years from today is expected to be 30.03 dollars. What is the dividend expected to be in 8 years from today? Number If 1) the expected return for Litchfield Design stock is...
Most questions answered within 3 hours.
-
A speeding car is traveling along a straight road with a
constant speed of 100 km/hour....
asked 7 seconds from now -
When 60.1 gg of calcium is reacted with nitrogen gas, 31.7 gg of
calcium nitride is...
asked 4 minutes ago -
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 19 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 14 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 27 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 35 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 34 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 37 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 38 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 42 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 57 minutes ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 59 minutes ago