6. Assume Coleco pays an annual dividend of $ 1.54 and has a share price of...
6. Assume Coleco pays an annual dividend of
$ 1.54 and has a share price of $ 37.18
It announces that its annual dividend will increase to $ 1.79
If its dividend yield stays the same, what should be its new
share price?
The new price will be $______. (Round to the nearest cent.)
Homework Answers
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6. Assume Coleco pays an annual dividend of
$ 1.54 and has a share price of...
Assume Coleco pays an annual dividend of $1.46 and has a share price of $37.58. It...
Assume Coleco pays an annual dividend of $1.46 and has a share price of $37.58. It announces that its annual dividend will increase to $1.79. If its dividend yield stays the same, what should be its new share price? The new price will be $. (Round to the nearest cent.)
Assume Coleco pays an annual dividend of $1.51 and has a share price of $37.07. It...
Assume Coleco pays an annual dividend of $1.51 and has a share price of $37.07. It announces that its annual dividend will increase to $1.75. If its dividend yield stays the same, what should be its new share price? ts The new price will be $ (Round to the nearest cent.)
Assume Coleco pays an annual dividend of $1.85 and has a share price of $37.00. It...
Assume Coleco pays an annual dividend of $1.85 and has a share price of $37.00. It announces that its annual dividend will increase to $2.10. If its dividend yield is to stay the same, what should its new share price be? The new share price should be $ (Round to the nearest cent.)
4. Assume a share of preferred stock pays an annual dividend of $12; the first dividend...
4. Assume a share of preferred stock pays an annual dividend of $12; the first dividend is in exactly 12 months. The preferred has a conversion ratio of 20 and the underlying stock price is $7. What is the preferred's price if the yield is 7%? (10 pts)
Assume a share of preferred stock pays an annual dividend of $12. The preferred's yield is...
Assume a share of preferred stock pays an annual dividend of $12. The preferred's yield is 7%. What is the preferred's price if the first dividend is in exactly 5 months? (10 pts)
Assume that Cola Co. has a share price of $43.91. The firm will pay a dividend...
Assume that Cola Co. has a share price of $43.91. The firm will pay a dividend of $1.16 in one year, and you expect Cola Co. to raise this dividend by approximately 6.4% per year in perpetuity. a. If Cola Co.'s equity cost of capital is 8.4%, what share price would you expect based on your estimate of the dividend growth rate? b. Given Cola Co.'s share price, what would you conclude about your assessment of Cola Co.'s future dividend...
Assume that Cola Co. has a share price of $42.44. The firm will pay a dividend...
Assume that Cola Co. has a share price of $42.44. The firm will pay a dividend of $1.25 in one year, and you expect Cola Co. to raise this dividend by approximately 6.9% per year in perpetuity. a. If Cola Co.'s equity cost of capital is 8.1%, what share price would you expect based on your estimate of the dividend growth rate? b. Given Cola Co.'s share price, what would you conclude about your assessment of Cola Co.'s future dividend...
Question 5 5 pts Assume a stock pays a dividend of $5, which will never change....
Question 5 5 pts Assume a stock pays a dividend of $5, which will never change. If the discount rate is 10%, what should be the price of the stock today? Enter your answer in dollars, rounded to the nearest cent (2 decimals). D Question 10 5 pts Assume a corporation has just paid a dividend of $ 3.84 per share. The dividend is expected to grow at a rate of 4.1 % per year forever, and the discount rate...
Nonconstant Dividend Growth Valuation A company currently pays a dividend of $1.8 per share (DO =...
Nonconstant Dividend Growth Valuation A company currently pays a dividend of $1.8 per share (DO = $1.8). It is estimated that the company's dividend will grow at a rate of 22% per year for the next 2 years, and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.1, the risk- free rate is 9%, and the market risk premium is 5.5%. What is your estimate of the stock's current price? Do not round...
Assume JBH paid an annual dividend of $1.80 and has a share price of $50.00. It...
Assume JBH paid an annual dividend of $1.80 and has a share price of $50.00. It announced that the company expects its dividend to grow at 5% for indefinite future. Compute the cost of equity for this firm.
Assume Coleco pays an annual dividend of $1.46 and has a share price of $37.58. It announces that its annual dividend will increase to $1.79. If its dividend yield stays the same, what should be its new share price? The new price will be $. (Round to the nearest cent.)
Assume Coleco pays an annual dividend of $1.51 and has a share price of $37.07. It announces that its annual dividend will increase to $1.75. If its dividend yield stays the same, what should be its new share price? ts The new price will be $ (Round to the nearest cent.)
Assume Coleco pays an annual dividend of $1.85 and has a share price of $37.00. It announces that its annual dividend will increase to $2.10. If its dividend yield is to stay the same, what should its new share price be? The new share price should be $ (Round to the nearest cent.)
4. Assume a share of preferred stock pays an annual dividend of $12; the first dividend is in exactly 12 months. The preferred has a conversion ratio of 20 and the underlying stock price is $7. What is the preferred's price if the yield is 7%? (10 pts)
Assume a share of preferred stock pays an annual dividend of $12. The preferred's yield is 7%. What is the preferred's price if the first dividend is in exactly 5 months? (10 pts)
Assume that Cola Co. has a share price of $43.91. The firm will pay a dividend of $1.16 in one year, and you expect Cola Co. to raise this dividend by approximately 6.4% per year in perpetuity. a. If Cola Co.'s equity cost of capital is 8.4%, what share price would you expect based on your estimate of the dividend growth rate? b. Given Cola Co.'s share price, what would you conclude about your assessment of Cola Co.'s future dividend...
Assume that Cola Co. has a share price of $42.44. The firm will pay a dividend of $1.25 in one year, and you expect Cola Co. to raise this dividend by approximately 6.9% per year in perpetuity. a. If Cola Co.'s equity cost of capital is 8.1%, what share price would you expect based on your estimate of the dividend growth rate? b. Given Cola Co.'s share price, what would you conclude about your assessment of Cola Co.'s future dividend...
Question 5 5 pts Assume a stock pays a dividend of $5, which will never change. If the discount rate is 10%, what should be the price of the stock today? Enter your answer in dollars, rounded to the nearest cent (2 decimals). D Question 10 5 pts Assume a corporation has just paid a dividend of $ 3.84 per share. The dividend is expected to grow at a rate of 4.1 % per year forever, and the discount rate...
Nonconstant Dividend Growth Valuation A company currently pays a dividend of $1.8 per share (DO = $1.8). It is estimated that the company's dividend will grow at a rate of 22% per year for the next 2 years, and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.1, the risk- free rate is 9%, and the market risk premium is 5.5%. What is your estimate of the stock's current price? Do not round...
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