Homework Answers
Using Constant Growth Model,
Stock Price = 1.92(1.04)/(0.10 - 0.04)
Stock Price = $33.28
The constant growth model implies that dividend growth remains constant from now to infinity.
Dividend Yield = 1.92(1.04)33.28 = 6.00%
Stock Price in 1 year = 1.92(1.04)2/(0.10 - 0.04) = $34.61
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please answer last three
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Options are:
First arrow: 35.20 /48.00/ 33.28/ 32.00
Second arrow: 6.24/5.77/4.16/6.00
Third arrow: 20.77/33.28/32.00/34.61
Fourth arrow: 4.00%/4.80%/0.24%/9.20%
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Super Carpeting Inc. just paid a dividend (D0D0) of $2.16, and its dividend is expected to grow at a constant rate (g) of 3.15% per year. If the required return (rsrs) on Super’s stock is 7.88%, then the intrinsic, or theoretical market, value of Super’s shares is per share. Which of the following statements is true about the constant growth model? When using a constant growth model to analyze a stock, if an increase in the required rate of return...
5. Constant growth stocks Super Carpeting Inc. (SCI) just paid a dividend (D ) of $1.44 per share, and its annual dividend is expected to grow at a constant rate (9) of 3.00% per year. If the required return (T) on SCI's stock is 7.50%, then the intrinsic value of SCI's shares is per share. Which of the following statements is true about the constant growth model? When using a constant growth model to analyze a stock, if an increase...
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please answer last three
questions:)
Urban Drapers has a sister company named Super Carpeting Inc. (SCI). SCI just paid a dividend (Do) of $2.88 per share, and its annual dividend is expected to grow at a constant rate (gL) of 6.00% per year. If the required return (rs ) on SCI's stock is 15.00%, then the intrinsic value of SCI's shares is $33.62 per share. (Note: Round intermediate calculations and your final answer to two decimal places.) Which of the...
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Options are:
First arrow: 35.20 /48.00/ 33.28/ 32.00
Second arrow: 6.24/5.77/4.16/6.00
Third arrow: 20.77/33.28/32.00/34.61
Fourth arrow: 4.00%/4.80%/0.24%/9.20%
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