SAPS company stocks are currently selling for $25 per share, and the required rate of return...
SAPS company stocks are currently selling for $25 per share, and the required rate of return on the stock is 20%. What is the growth rate expected for the dividends assuming constant growth?
Homework Answers
The growth rate of dividend under constant growth model will be same as the rate of growth of the company if the dividend payout ratio is assumed to be 100%.
In this case, since the required rate of return of the company is 20%, so the return would be
= 25*20%
= $5
So,assuming 100% payout ratio the rate of return on dividend under constant growth model would also be same so you can say that the rate of return on the stock will be rate of return on dividend under constant growth model.
so in this case , the rate of growth of dividend will be 20% similar to growth in required rate of return.
Add Answer to:
SAPS company stocks are currently selling for $25 per share, and
the required rate of return...
Please add the following sentence to the question: "The company just paid $5 dividend." Question #5:...
Please add the following sentence to the question: "The company just paid $5 dividend." Question #5: SAPS company stocks are currently selling for $25 per share, and the required rate of return on the stock is 20%. What is the growth rate expected for the dividends assuming constant growth?
3.The stock in Up-Towne Movers is selling for $47.20 per share. Investors have a required return...
3.The stock in Up-Towne Movers is selling for $47.20 per share. Investors have a required return of 9.8 percent and expect the dividends to grow at 4.1 percent indefinitely. What was the dividend the company just paid? 4.CDB stock is currently priced at $72. The company will pay a dividend of $4.25 next year and investors require a return of 10.4 percent on similar stocks. What is the dividend growth rate on this stock?
The stock of Nogro Corporation is currently selling for $20 per share. Earnings per share in...
The stock of Nogro Corporation is currently selling for $20 per share. Earnings per share in the coming year are expected to be $3. The company has a policy of paying out 40% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 15% rate of return per year. This situation is expected to continue indefinitely. a. Assuming the current market price of the stock reflects its intrinsic value as computed using...
The stock of Nogro Corporation is currently selling for $13 per share. Earnings per share in...
The stock of Nogro Corporation is currently selling for $13 per share. Earnings per share in the coming year are expected to be $2.30. The company has a policy of paying out 25% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 17% rate of return per year. This situation is expected to continue indefinitely. a. Assuming the current market price of the stock reflects its intrinsic value as computed using...
Braxton's Cleaning Company stock is selling for $33.25 per share based on a required return of...
Braxton's Cleaning Company stock is selling for $33.25 per share based on a required return of 11.7 percent. What is the the next annual dividend if the growth rate in dividends is expected to be 4.5 percent indefinitely? Multiple Choice o o o o o
The stock of Nogro Corporation is currently selling for $23 per share. Earnings per share in...
The stock of Nogro Corporation is currently selling for $23 per share. Earnings per share in the coming year are expected to be $3.30. The company has a policy of paying out 40% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 21% rate of return per year. This situation is expected to continue indefinitely a. Assuming the current market price of the stock reflects its intrinsic value as computed using...
21) Green Company's common stock is currently selling at $24.00 per share. The company recently paid dividends of $...
21) Green Company's common stock is currently selling at $24.00 per share. The company recently paid dividends of $1.92 per share and projects growth at a rate of 4%. At this rate what is the stock's expected rate of return? A indit ant att
21) Green Company's common stock is currently selling at $24.00 per share. The company recently paid dividends of $...
21) Green Company's common stock is currently selling at $24.00 per share. The company recently paid dividends of $1.92 per share and projects growth at a rate of 4%. At this rate what is the stock's expected rate of return? A indit ant att
Secolo Corporation stock currently sells for $25 per share. The market requires a return of 10.4...
Secolo Corporation stock currently sells for $25 per share. The market requires a return of 10.4 percent on the firm's stock. If the company maintains a constant 3.2 percent growth rate in dividends, what was the most recent dividend per share paid on the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) $ Dividend paid per share
Computer stocks currently provide an expected rate of return of 17%. MBI, a large computer company,...
Computer stocks currently provide an expected rate of return of 17%. MBI, a large computer company, will pay a year-end dividend of $2.20 per share. a. If the stock is selling at $52 per share, what must be the market's expectation of the dividend growth rate? (Round your answer to 2 decimal places.) Growth rate % b. If dividend growth forecasts for MBI are revised downward to 7% per year, what will happen to the price of MBI stock? The...
Please add the following sentence to the question: "The company just paid $5 dividend." Question #5: SAPS company stocks are currently selling for $25 per share, and the required rate of return on the stock is 20%. What is the growth rate expected for the dividends assuming constant growth?
The stock of Nogro Corporation is currently selling for $20 per share. Earnings per share in the coming year are expected to be $3. The company has a policy of paying out 40% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 15% rate of return per year. This situation is expected to continue indefinitely. a. Assuming the current market price of the stock reflects its intrinsic value as computed using...
Braxton's Cleaning Company stock is selling for $33.25 per share based on a required return of 11.7 percent. What is the the next annual dividend if the growth rate in dividends is expected to be 4.5 percent indefinitely? Multiple Choice o o o o o
The stock of Nogro Corporation is currently selling for $23 per share. Earnings per share in the coming year are expected to be $3.30. The company has a policy of paying out 40% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 21% rate of return per year. This situation is expected to continue indefinitely a. Assuming the current market price of the stock reflects its intrinsic value as computed using...
21) Green Company's common stock is currently selling at $24.00 per share. The company recently paid dividends of $1.92 per share and projects growth at a rate of 4%. At this rate what is the stock's expected rate of return? A indit ant att
21) Green Company's common stock is currently selling at $24.00 per share. The company recently paid dividends of $1.92 per share and projects growth at a rate of 4%. At this rate what is the stock's expected rate of return? A indit ant att
Secolo Corporation stock currently sells for $25 per share. The market requires a return of 10.4 percent on the firm's stock. If the company maintains a constant 3.2 percent growth rate in dividends, what was the most recent dividend per share paid on the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) $ Dividend paid per share
Computer stocks currently provide an expected rate of return of 17%. MBI, a large computer company, will pay a year-end dividend of $2.20 per share. a. If the stock is selling at $52 per share, what must be the market's expectation of the dividend growth rate? (Round your answer to 2 decimal places.) Growth rate % b. If dividend growth forecasts for MBI are revised downward to 7% per year, what will happen to the price of MBI stock? The...
Most questions answered within 3 hours.
-
Intrapreneurship is defined as the
development of an enterprise culture with an existing (Nandan,
2009). An...
asked 12 minutes ago -
QUESTION 1 Tamiflu is a drug used to treat influenza. A study
found that Tamiflu reduced...
asked 16 minutes ago -
Which of the following would be less likely to be used to
allocate factory overhead when...
asked 22 minutes ago -
Transverse pulses travel with a speed of 195 m/s along a taut
copper wire whose diameter...
asked 21 minutes ago -
Sampling for Engineers Homework question 11.51
Suppose that Y1;Y2;Y3;Y4 denote a random sample from a
Poisson(θ)...
asked 24 minutes ago -
Which of the following is cleaved by regulated intramembrane
proteolysis (RIP)? Select any/all answers that apply....
asked 24 minutes ago -
Random characters You decide to create a program characters.py
that fills a two-dimensional list with random...
asked 36 minutes ago -
What are the major sources of error in your determination of the
molar mass? Select all...
asked 40 minutes ago -
A. Suppose your manager indicates that for a normally
distributed data set you are analyzing, your...
asked 1 hour ago -
During the month of August, the average temperature of a lake
next to a local college...
asked 43 minutes ago -
Which of these four researchers is most likely to have made Type
1 error
Kim who...
asked 56 minutes ago -
In a performance test, each of two cars takes 8.9 s to
accelerate from rest to...
asked 57 minutes ago