Williams Sonoma stock is currently selling for $56.30. It is expected to pay a dividend of...
Williams Sonoma stock is currently selling for $56.30. It is expected to pay a dividend of $1.72 at the end of the year. Dividends are expected to grow at a constant rate of 6.4% indefinitely. Compute the required rate of return on Williams Sonoma Corporation stock.
Homework Answers
Required return=(D1/Current price)+Growth rate
=(1.72/56.30)+0.064
which is equal to
=9.46%(Approx).
Add Answer to:
Williams Sonoma stock is currently selling for $56.30. It is
expected to pay a dividend of...
9. Nell Corporation stock is currently selling for $15.50. The stock is expected to pay a...
9. Nell Corporation stock is currently selling for $15.50. The stock is expected to pay a dividend of $1.75 at the end of the year. Dividends are expected to grow at a constant rate of 6% indefinitely. Compute the expected rate of return on Nell Corporation stock. Submit your answer as a percentage and round to two decimal places.
QUESTION 31 Williams Company's stock is selling for $57.50 and will pay a dividend of $5.10...
QUESTION 31 Williams Company's stock is selling for $57.50 and will pay a dividend of $5.10 next period. Assuming that dividends are expected to grow at a rate of 2 percent per year, what is the current required return for William's Company stock? O 5.3790 7.59% 8.8196 10.87% 19.26%
6. Martin Spencer, Inc. (MSI) stock is expected to pay a dividend of $3.00 at the...
6. Martin Spencer, Inc. (MSI) stock is expected to pay a dividend of $3.00 at the end of the year. Dividends are forecasted to grow at a constant rate of 3%/yr. indefinitely. The appropriate required return for valuing this stock is 8%/yr. a. Calculate today's price for MSI stock. b. Calculate the price if 'g' is expected to only be 2%/yr. c. Calculate the price if 'g' is expected to be zero.
A. A company has its stock currently selling at $67.50. The company is expected to grow...
A. A company has its stock currently selling at $67.50. The company is expected to grow at a constant rate of 7 percent. If the appropriate discount rate is 17 percent, what is the current dividend? A. $6.31 B. $6.39 C. $6.75 D. $5.91 E. $5.86 B. A stock will not pay a dividend for 6 years. At the end of the seventh year, it will pay a dividend of $7. This dividend will have constant growth of...
Cartwright Brothers’ stock is currently selling for $40 a share. The stock is expected to pay...
Cartwright Brothers’ stock is currently selling for $40 a share. The stock is expected to pay a $4 dividend at the end of the year. The stock’s dividend is expected to grow at a constant rate of 7 percent a year forever. The risk-free rate (kRF) is 7 percent and the market risk premium (kM – kRF) is 5 percent. What is the stock’s beta? a. 5.00 b. 1.00 c. 2.00 d. 3.00 e. 4.00
Cartwright Brothers’ stock is currently selling for $40 a share. The stock is expected to pay...
Cartwright Brothers’ stock is currently selling for $40 a share. The stock is expected to pay a $4 dividend at the end of the year. The stock’s dividend is expected to grow at a constant rate of 7 percent a year forever. The risk-free rate (kRF) is 7 percent and the market risk premium (kM – kRF) is 5 percent. What is the stock’s beta? a. 5.00 b. 1.00 c. 2.00 d. 3.00 e. 4.00
10. (RWJ, exercise 5.20) Allen Inc. is expected to pay an equal amount of dividends at...
10. (RWJ, exercise 5.20) Allen Inc. is expected to pay an equal amount of dividends at the end of the first two years. Thereafter the dividend will grow at a constant rate of 4% indefinitely. The stock is currently traded at S30. What is the expected dividend per share for the next year if the required rate of return is 12%?
(a) Union Pacific currently does not pay a dividend. You expect that the company will begin...
(a) Union Pacific currently does not pay a dividend. You expect that the company will begin paying a dividend of $2 per share in 6 years, and you expect dividends to grow indefinitely at a 3.5% rate per year thereafter. If the required rate of return is 12 percent, how much is the stock currently worth? [8 Points) (b) Walmart Inc. just paid a dividend of do = $2.08 per share. The dividends are expected to grow at a rate...
A stock is expected to pay a dividend of $1.00 at the end of the year...
A stock is expected to pay a dividend of $1.00 at the end of the year (i.e., D1 = $1.00), and it should continue to grow at a constant rate of 5% a year. If its required return is 13%, what is the stock's expected price 1 year from today? Do not round intermediate calculations. Round your answer to the nearest cent. $ ___________________________________________________________________________________-- Holtzman Clothiers's stock currently sells for $39.00 a share. It just paid a dividend of $1.00...
A stock is expected to pay a dividend of $0.75 at the end of the year....
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?
QUESTION 31 Williams Company's stock is selling for $57.50 and will pay a dividend of $5.10 next period. Assuming that dividends are expected to grow at a rate of 2 percent per year, what is the current required return for William's Company stock? O 5.3790 7.59% 8.8196 10.87% 19.26%
6. Martin Spencer, Inc. (MSI) stock is expected to pay a dividend of $3.00 at the end of the year. Dividends are forecasted to grow at a constant rate of 3%/yr. indefinitely. The appropriate required return for valuing this stock is 8%/yr. a. Calculate today's price for MSI stock. b. Calculate the price if 'g' is expected to only be 2%/yr. c. Calculate the price if 'g' is expected to be zero.
10. (RWJ, exercise 5.20) Allen Inc. is expected to pay an equal amount of dividends at the end of the first two years. Thereafter the dividend will grow at a constant rate of 4% indefinitely. The stock is currently traded at S30. What is the expected dividend per share for the next year if the required rate of return is 12%?
(a) Union Pacific currently does not pay a dividend. You expect that the company will begin paying a dividend of $2 per share in 6 years, and you expect dividends to grow indefinitely at a 3.5% rate per year thereafter. If the required rate of return is 12 percent, how much is the stock currently worth? [8 Points) (b) Walmart Inc. just paid a dividend of do = $2.08 per share. The dividends are expected to grow at a rate...
Most questions answered within 3 hours.
-
Le Terroir Winery is considering an expansion project to produce
fine wines. The trial expansion will...
asked 1 minute from now -
The Bahraini public budget experiences deficit in the last
seven years, what are procedures are taken...
asked 5 minutes ago -
You invested $30,000 in a mutual fund at the beginning of the
year when the NAV...
asked 9 minutes ago -
Would you expect the price elasticity of supply for guitars to
be more inelastic in the...
asked 11 minutes ago -
A snowmobile is originally at the point with position vector
30.1 m at 95.0° counterclockwise from...
asked 10 minutes ago -
MAN3240 Organizational Behavior
In one to two paragraphs
6.) How can understanding emotions make me more...
asked 19 minutes ago -
Identify one individual who, in your opinion, is an excellent
leader. List the qualities that this...
asked 16 minutes ago -
For the data set shown below, complete parts (a) through (d)
below. x 3 4 5...
asked 22 minutes ago -
A university administrator working in student housing wants to
determine if the percentage of students residing...
asked 36 minutes ago -
3). Describe human population growth that has occurred in the
past 400 years. Use terms learned...
asked 33 minutes ago -
A
projectile is blue at a target. The distance from the point of
impact to the...
asked 58 minutes ago -
Given a 32 bit processor, with 2 MB of physical RAM split into 512
frames. What...
asked 48 minutes ago