Bossa Inc., just paid 1.2 dividend per share. The dividend is expected to grow at 4 percent indefinitely. If the required rate of return is 8 percent, what is the fair value of this stock?
Fair value of this stock = D0(1 + g) / (rs - g)
Fair value of this stock = 1.2(1 + 0.04) / (0.08 - 0.04)
Fair value of this stock = 31.2
Bossa Inc., just paid 1.2 dividend per share. The dividend is expected to grow at 4...
A7X Corp. just paid a dividend of $1.40 per share. The dividends are expected to grow at 35 percent for the next 9 years and then level off to a growth rate of 8 percent indefinitely. If the required return is 12 percent, what is the price of the stock today?
A company has just paid a $2.10 dividend per share. The dividend is expected to grow at a constant rate of 3% per year. The required return is 8%. What is the current value of the company’s stock?
A7X Corp. just paid a dividend of $1.55 per share. The dividends are expected to grow at 35 percent for the next 7 years and then level off to a growth rate of 6 percent indefinitely. If the required return is 15 percent, what is the price of the stock today? a. $2.02 b. $56.08 c. $77.77 d. $79.32 E. $76.21
LED, Inc. just paid a dividend of $2.50 per share. The dividends are expected to grow for the next 3 years at 8% per year, then grow at 3% per year forever. The required rate of return for LED stock is 12% per year. What should the market price of LED stock be? What should the ex-dividend stock price of LED be in year 2? If you purchased the share of LED at time 2, at the price you calculated...
Thirsty Cactus Corp. just paid a dividend of $1.25 per share. The dividends are expected to grow at 35 percent for the next 7 years and then level off to a 8 percent growth rate indefinitely. Required : If the required return is 13 percent, what is the price of the stock today?
Thirsty Cactus Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 30 percent for the next 6 years and then level off to a 7 percent growth rate indefinitely. Required : If the required return is 15 percent, what is the price of the stock today?
The Timberlake Orchard Co just paid a dividend of $7 per share. The dividend is expected to grow at a rate of 5% for the next three years. In year four and five it will grow at a rate of 4% per year. The growth rate of dividend is expected to be constant 6 percent indefinitely from year six. The required rate of return is 13 percent. What is the current share price? (Show all your computations)
A company just paid a dividend of $1.70 per share. You expect the dividend to grow 13% over the next year and 9% two years from now. After two years, you have estimated that the dividend will continue to grow indefinitely at the rate of 4% per year. If the required rate of return is 12% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)
Thirsty Cactus Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 40 percent for the next 8 years and then level off to a 8 percent growth rate indefinitely. Required : If the required return is 14 percent, what is the price of the stock today? $150.27 $147.27 $3.67 $153.28 $121.06
Could I Industries just paid a dividend of $1.05 per share. The dividends are expected to grow at a rate of 20 percent for the next six years and then level off to a growth rate of 5 percent indefinitely. If the required return is 13 percent, what is the value of the stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)