ZuoTi.Pro
Question

4. CSUSB Inc. plans on paying a dividend of $1.23 at the end of the year. They expect to grow their dividend by 2.1% annually
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Stock price D1:(r-g) Here, $ Expected dividend (D1) Required return (r) Growth rate (g) 1.23 16% 2.1% Stock price $ 8.85 1.23

*Please rate thumbs up

0 0
Add a comment
Know the answer?
Add Answer to:
4. CSUSB Inc. plans on paying a dividend of $1.23 at the end of the year....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Casino Inc. expects to pay a dividend of $4 per share at the end of year...

    Casino Inc. expects to pay a dividend of $4 per share at the end of year 1 (Div1) and these dividends are expected to grow at a constant rate of 5 percent per year forever. If the required rate of return on the stock is 15 percent, what is the current value of the stock today?

  • A stock is expected to pay a dividend of $1.50 at the end of the year...

    A stock is expected to pay a dividend of $1.50 at the end of the year (.e., Di = $1.50), and it should continue to grow at a constant rate of 3% a year. If its required return is 15%, what is the stock's expected price 1 year from today? Do not round intermediate calculations. Round your answer to the nearest cent. Tresnan Brothers is expected to pay a $2.20 per share dividend at the end of the year (I.e.,...

  • Peterson packaging inc does not currently pay dividends the company will start paying 1.25 dividend at...

    Peterson packaging inc does not currently pay dividends the company will start paying 1.25 dividend at the end of year 3 and grow it by 10% for 6 years after 6 years it will fix to 2.44 dividend forever if you want 15% return what should you pay for it today?

  • 4. Diets For You announced today that it will begin paying annual dividends next year. The...

    4. Diets For You announced today that it will begin paying annual dividends next year. The first dividend will be $1.25 a share. The following dividends will be $0.25, $0.25, $0.50, and $0.75 a share annually for the following 4 years, respectively. At the end of the fifth year, the stock could be sold for $18. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 8.5 percent?...

  • Chen Inc. announced today that it will begin paying annual dividends. The first dividend will be...

    Chen Inc. announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.75 a share. The following dividends will be $1.00, $1.10, and $1.20 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3% per year. How much are you willing to pay to buy one share of this stock if your desired rate of return is 6%? Please show all...

  • Company Hector said today that they will begin paying annual dividends next year. The first dividend...

    Company Hector said today that they will begin paying annual dividends next year. The first dividend will be $0.15 a share. The following dividends will be $0.25, $0.35, and $0.60 a share annually for the following 3 years respectively. After that, dividends are projected to increase by 4 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 10 percent?

  • Darla Davidovics would like to purchase the stock of Dalmation Dolls Inc. The company plans to...

    Darla Davidovics would like to purchase the stock of Dalmation Dolls Inc. The company plans to pay a dividend of $4.18 next year which will grow by 5.2% in the second year of the holding period. The dividend is expected to grow by 7.5% in the third year of the holding period and Darla expects to sell the stock at the end of that year for $85. If Darla’s expected rate of return on this stock is 21%, what is...

  • A stock is expected to pay a dividend of $2.50 at the end of the year...

    A stock is expected to pay a dividend of $2.50 at the end of the year (i.e., D1 = $2.50), and it should continue to grow at a constant rate of 4% a year. If its required return is 12%, what is the stock's expected price 4 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $

  • A stock is expected to pay a dividend of $0.50 at the end of the year...

    A stock is expected to pay a dividend of $0.50 at the end of the year (i.e., D1 = $0.50), and it should continue to grow at a constant rate of 7% a year. If its required return is 13%, what is the stock's expected price 4 years from today? Round your answer to two decimal places. Do not round your intermediate calculations. पी

  • (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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT