Homework Answers
Price of Stock = Next expected dividend/(Required return - growth rate)
= 3.14/(15%-10%)
= $62.8
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25. dataDyne Corporation's stock is expected to pay an annual dividend of $3.14 next year (yesterday...
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Johnson & Johnson stock is expected to pay a $3.54 annual dividend next year, the current stock price is $138, and the expected growth rate in dividends is 5.2 %. Using the dividend discount growth model, what is the expected return? 6% 8% 10% 12%
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The company AT&T’s current stock price is $33.79, and yesterday it paid a dividend of $1.85 per share. Analysts expect the dividend to grow at an 8% rate for the next three years (i.e. the next three dividends) due to the continued market growth of smartphones and increased usage of data services. Beginning with the dividend in year 4, analysts expect AT&T’s dividend growth rate to level off to 3% in perpetuity as these two revenue streams mature and data...
Whackamole corporation's share is trading in the open market. The company is expected to pay S5 dividend next y...
Whackamole corporation's share is trading in the open market. The company is expected to pay S5 dividend next year, but the dividend is expected to grow at 63 for another 4 years, but then decrease by 3% for another 5 years because of foresecable financial difficulties. But after that, the dividend is expected to grow again at 2%, which is roughly the expected GDP growth rate at US. Price this stock. Clearly show your calculations and forinulas
Whackamole corporation's share...
Assume Highine Company has jst paid an annual dividend of $094 Analysts are predicting an 11.7%...
Assume Highine Company has jst paid an annual dividend of $094 Analysts are predicting an 11.7% per year growth rate in eamings over the next fve years Aher then, Highine's eamings are expected to grow at the ouret industry average of 4.8% per year. If Highline's eqity cost of capital is 8.5% per year and is dividend payout ratio remains constant, for whal price does thee dividend discount model predict Highine stock shodd sel? The value of Highline's stock is...
A stock paid its annual dividend of $4.75 per share last week. This dividend is expected...
A stock paid its annual dividend of $4.75 per share last week. This dividend is expected to grow at 20 percent per year for two years. Thereafter, the dividend growth rate is expected to be constant at 5 percent per year indefinitely. If the appropriate discount rate for the stock is 12 percent, what should the stock's price be today?
A stock expects to pay a dividend of $3.72 per share next year. The dividend is...
A stock expects to pay a dividend of $3.72 per share next year. The dividend is expected to grow at 25 percent per year for three years followed by a constant dividend growth rate of 4 percent per year in perpetuity. What is the expected stock price per share 5 years from today, if the required return is 12 percent?
: Common Share It pays annual dividends and a $4 dividend was paid yesterday. As per...
: Common Share It pays annual dividends and a $4 dividend was paid yesterday. As per the market consensus, the company’s dividend is expected to decrease by 10% per annum in the first two years. Then its dividend will grow by 25% for next three years. After that, the dividend growth rate will become 5% p.a. constant till foreseeable future. Peters required rate of return on this investment is 20% per annum
Assume Highline Company has just paid an annual dividend of $ 1.06 Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of $ 1.06 Analysts are predicting an 10.7 % per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 4.7 % per year. If Highline's equity cost of capital is 9.3 % per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of...
Assume Highline Company has just paid an annual dividend of $ 1.03. Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of $ 1.03. Analysts are predicting an 11.6 % per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 4.9 % per year. If Highline's equity cost of capital is 8.6 % per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of...
A stock expects to pay a dividend of $4.07 per share next year. The dividend is...
A stock expects to pay a dividend of $4.07 per share next year. The dividend is expected to grow at 25 percent per year for four years followed by a constant dividend growth rate of 6 percent per year in perpetuity. What is the expected stock price per share 10 years from today, if the required return is 13 percent? A. $177 B. $190 CC. $201 CD. $163
Whackamole corporation's share is trading in the open market. The company is expected to pay S5 dividend next year, but the dividend is expected to grow at 63 for another 4 years, but then decrease by 3% for another 5 years because of foresecable financial difficulties. But after that, the dividend is expected to grow again at 2%, which is roughly the expected GDP growth rate at US. Price this stock. Clearly show your calculations and forinulas
Whackamole corporation's share...
Assume Highine Company has jst paid an annual dividend of $094 Analysts are predicting an 11.7% per year growth rate in eamings over the next fve years Aher then, Highine's eamings are expected to grow at the ouret industry average of 4.8% per year. If Highline's eqity cost of capital is 8.5% per year and is dividend payout ratio remains constant, for whal price does thee dividend discount model predict Highine stock shodd sel? The value of Highline's stock is...
A stock expects to pay a dividend of $4.07 per share next year. The dividend is expected to grow at 25 percent per year for four years followed by a constant dividend growth rate of 6 percent per year in perpetuity. What is the expected stock price per share 10 years from today, if the required return is 13 percent? A. $177 B. $190 CC. $201 CD. $163
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