As per Dividend Discount Model, Value of Stock = Expected Dividend next year/(Required return - growth rate)
= 0.38*(1+5%)/(19%-5%)
= $2.85
Hence, current value of stock = $2.85
Partzman Co. paid a dividend of $0.38 on its common stock at the end of last...
ily Co. paid a dividend of $5.25 on its common stock this year. The company's dividends are expected to grow at a constant rate of 8.5% indefinitely. If the required rate of return on this stock is 15.5%, compute the intrinsic value per share of Lily Co. stock. $56.23 $43.90 $75 $81.38
Lepric Corp. paid a dividend of $3.27 on its common stock at the end of last year. Dividends are expected to grow at a constant rate of 5% in the forseeable future. What is the intrinsic value of the stock if investors’ required rate of return is 13%? Round to two decimal places (Ex. $0.00)
Lepric Corp. paid a dividend of $3.23 on its common stock at the end of last year. Dividends are expected to grow at a constant rate of 5% in the forseeable future. What is the intrinsic value of the stock if investors' required rate of return is 9%? Round to two decimal places (Ex. $0.00) I
The
Herjavec Co just paid a dividend of 2.00 per share on its stock.
The dividends are expected to grow at a constant rate of 4 percent
per year indefinitely. Investors require a return of 12 percent on
the company's stock.
The Herjavec Co.just paid a dividend of $2.00 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. Investors require a return of 12 percent on the company's...
he Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.48 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. a. If investors require a return of 12 percent on the company's stock, what is the current price? b. What will the price be in 14 years?
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The Brennan Co. just paid a dividend of $2.50 per share on its stock. The dividends are expected to grow at a constant rate of 7% per year indefinitely. Brennan Co. investors require a 12% return on their stock. a. What is the current price of a share of Brennan Co. Stock? b. What will be the price of a share in of Brennan Co. Stock in 5 years? c. What will be the price of a share of Brennan...
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