ABC Inc. is expected to pay an annual dividend of R0.80 a share next year. The market price of the share is R22.40 and the growth rate is 5%. What is the firm's cost of equity?
7.6% |
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7.9% |
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8.2% |
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8.6% |
ABC Inc. is expected to pay an annual dividend of R0.80 a share next year. The...
Chelsea Fashions is expected to pay an annual dividend of $1.26 a share next year. The market price of the stock is $24.09 and the growth rate is 2.6 percent. What is the cost of equity? Multiple Choice 7.91 percent 9.77 percent 9.24 percent 7.54 percent 7.83 percent
46. Chelsea Fashi ons is expected to pay an annual dividend of $0.80 a share next year. narket price of the stock is $22.40 and the growth rate is 5 percent. What is the firm's cost of equity? A. 7.58 percent B. 7.91 percent C. 8.24 percent D. 8.57 percent E. 9.00 percent
Tanrun Inc. is expected to pay an annual dividend of $0.45 per share in one year. Analysts expect the firm's dividends to grow by 2% forever. Its stock price is $37.6 and its beta is 0.8. The risk-free rate is 2% and the expected market risk premium is 4.5%. What is the best guess for the cost of equity? Tried with 0.0319, 0.0556 but it turns out to be wrong answers
ABC, Inc. is expected to pay an annual dividend per share of $3.50, and investors require a rate of return on S&P500 index is 10%, with the T-bill rate at 5%. What should be the current share price of ABC's stock if ABC's beta is 1.6, with a growth rate of 6%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Share Price = ?
1) Firm ABC is going to pay an annual dividend of $2.00 per share next year. Management just announced that future dividends will increase by 2 percent annually. What is the amount of the expected dividend in year 5? 2) Firm ABC is going to pay an annual dividend of $2.00 per share next year. Management just announced that future dividends will increase by 5 percent annually in the first two years and 2 percent annually afterwards. What is the...
Big Apple, Inc. is expected to pay an annual dividend in the amount of $1.5 a share next year. This dividend is expected to increase by 5 percent annually. The company’s stock is currently selling for $35 per share. What is the cost of equity?
1. ABC, Inc. is expected to pay an annual dividend per share of $2.80, and investors require a rate of return on S&P500 index is 12%, with the T-bill rate at 6%. What should be the current share price of ABC's stock if ABC's beta is 1.7, with a growth rate of 5%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 2. If firm A has a higher plowback ratio than firm B, then firm A...
Doolittle Co.just paid a dividend of $4.2 this year (to). Doolittle is expected to pay 0.73 of its earnings as dividends and will have an ROE of 0.1 until the fourth year (ta). After that, its dividend payout ratio will increase to 0.79 and the ROE is expected to decrease to 0.04. Applying the cost of equity of 0.13 and the multistage growth model, compute the intrinsic price of Doolittle. Flanders, Inc., has expected earnings of $7.5 per share for...
15) Lunar Adventures Inc is expected to pay a dividend of $1.40 per share at the end of this year and expected to pay a dividend of $1.50 per share at the end of the second year. As well, you expect the stock price to be $25.00 at the end of the second year. If the firm's equity cost of capital is 10% and you plan to hold the stock for one year, the price you would expect to be...
1. Excelor stock is expected to pay $2.80 per share as its next annual dividend. The firm has a policy of increasing the dividend by 10.0 percent annually. The stock has a market price of $13.61 and a beta of 2.6. The market risk premium is 8.54 percent and the risk-free rate is 4.80 percent. What is the cost of equity? 27.71 percent 28.14 percent 29.18 percent 28.79 percent 2. The 13.50 percent preferred stock of Ajax Unlimited is selling...