The next year the common stock of Gold Corp. will pay a dividend of $4.01 per...
The next year the common stock of Gold Corp. will pay a dividend of $4.01 per share. If the company is growing at a rate of 4.84 percent per year, and your required rate of return is 10.13 percent, what is Gold's company stock worth to you?
Homework Answers
The stock is worth $ 75.803403 as follows:
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The next year the common stock of Gold Corp. will pay a dividend
of $4.01 per...
Tory's Corp common stock currently trades for $120.00 and is projected to pay a dividend of...
Tory's Corp common stock currently trades for $120.00 and is projected to pay a dividend of $8.00 per share next year. Assuming that Greshak's average historical return on equity is 11.2%, the risk free rate is 2.5% and the constant growth rate for the company is projected to be 3.0%, what is the market's required rate of return on the company's common stock (rounded)?
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7-1. One year ago, James Sirlank bought Dell Computer common stock for $20 per share. Today...
7-1. One year ago, James Sirlank bought Dell Computer common stock for $20 per share. Today the stock is selling for $19 per share. During the year, James received four dividend payments, each in the amount of $0.20 per share. (a) What rate of return did James earn during the year? (b) What were the (1) dividend yield and (2) the capital gains yield associated with the stock for the year? 7-9. Suppose your company is expected to grow at...
A stock expects to pay a dividend of $4.07 per share next year. The dividend is...
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QUESTION 11 Quixy Corp is expected to pay a dividend next year of $5.3 per share....
QUESTION 11 Quixy Corp is expected to pay a dividend next year of $5.3 per share. The dividend is expected to grow at a constant rate of 4% per year if Quixy Corp stock is selling for $59.37 per share, what is the stockholders' expected rate return? Submit your answer as a percentage and round to two decimal places (Ex 0.00%) QUESTION 12 Elicon Inc. preferred stock pays a constant annual dividend of $10.46 per share. If investors' required rate...
Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.25 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company's stock is 8.60 percent, 11.70 percent, and 14.40 percent, respectively. Required: (a) What is the stock price for Red. Inc., Company? (Click to select) (b) What is the stock price for Yellow Corp. Company? (Click to select) (c) What is the stock price for Blue Company?...
Q12. Stock Valuation: Cape Corp. will pay a dividend of $2.64 next year. The company has stated that it will maintain a constant growth rate of 4.5 percent a year forever. If you want a return of 12 percent, how much will you pay for the stock? What if you want a return of 8 percent? What does this tell you about the relationship between the required return and the stock price? Dividend paid Dividend growth rate Required return Required...
Sarval Corp is expected to pay a dividend next year of $4.79 per share. The dividend is expected to grow at a constant rate of 4% per year. If Sarval Corp stock is selling for $41.65 per share, what is the stockholders' expected rate of return? Submit your answer as a percentage and round to two decimal places (Ex. 0.00%)
7-1. One year ago, James Sirlank bought Dell Computer common stock for $20 per share. Today the stock is selling for $19 per share. During the year, James received four dividend payments, each in the amount of $0.20 per share. (a) What rate of return did James earn during the year? (b) What were the (1) dividend yield and (2) the capital gains yield associated with the stock for the year? 7-9. Suppose your company is expected to grow at...
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