Compute X company’s stock price given the following information: Earnings and dividends are expected to grow...
Compute X company’s stock price given the following information:
Earnings and dividends are expected to grow by 3% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends.
Assume next year dividend is $9, the market capitalization rate is 13%, and next year EPS is $16.
Homework Answers
Current Stock Price is calculatedin excel and screen shot provided below:
Current Stock Price is $110.36.
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Compute
X company’s stock
price given the following information:
Earnings and dividends are
expected to grow...
Company Z-prime’s earnings and dividends per share are expected to grow by 4% a year. Its...
Company Z-prime’s earnings and dividends per share are expected to grow by 4% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next year’s dividend is $2, the market capitalization rate is 12% and next year’s EPS is $9. What is Z-prime’s stock price?
Company Z prime's earnings and dividends per share are expected to grow by 2% a year....
Company Z prime's earnings and dividends per share are expected to grow by 2% a year. Its growth will stop after year 4 In year 5 and afterward it will pay out all eamings as dividends Assume next year's dividend is $6, the market capitalization rate is 12% and next year's EPS is $11. What is Z-prime's stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price
the answer of $62.17 is coming up wrong. thank you. Company Z-prime's earnings and dividends per...
the answer of $62.17 is coming up wrong. thank you.
Company Z-prime's earnings and dividends per share are expected to grow by 4% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next year's dividend is $2, the market capitalization rate is 12% and next year's EPS is $9. What is Z-prime's stock price?
Company Z's earnings and dividends per share are expected to grow indefinitely by 3% a year....
Company Z's earnings and dividends per share are expected to grow indefinitely by 3% a year. Assume next year's dividend per share is $19 and next year's EPS is $4. The market capitalization rate is 11%. If Company Z were to distribute all of its earnings, it could maintain a level dividend stream of $4 a share. How much is the market actually paying per share for growth opportunities?
Company's Z's earnings and dividends per share are expected to grow indefinitely by 3% a year....
Company's Z's earnings and dividends per share are expected to grow indefinitely by 3% a year. Assume next year's dividend per share is $2 and next year's EPS is $3. The market capitalization rate is 9%. If Company Z were to distribute all of its earnings, it could maintain a level dividend stream of $3 a share. How much is the market actually paying per share for growth opportunities? (Do not round intermediate calculations. Negative amount should be indicated by...
The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 7% per...
The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 7% per year in the future. Shelby's common stock sells for $23 per share, its last dividend was $2.00, and the company will pay a dividend of $2.14 at the end of the current year. . Using the discounted cash flow approach, what is is cost of equity? b. If the firm's beta is 1.6, the risk-free rate is 9%, and the expected return on the...
10. Company Z's earnings and dividends per share are expected to grow indefinitely by 5% a...
10. Company Z's earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year's dividend is $10 and the market capitalization rate is 8%. If company Z were to distribute all its earnings, it could maintain a level dividend stream of $15 a share(EPS-15) How much is the market actually paying per share for growth opportunities? (a) $122.90 (b) $137.55 (c) $145.83 (d) $157.44
The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 5% per...
The earnings, dividends, and stock price of
Shelby Inc. are expected to grow at 5% per year in the future.
Shelby's common stock sells for $20.50 per share, its last dividend
was $1.80, and the company will pay a dividend of $1.89 at the end
of the current year.
Problem 9-10 Cost of Equity The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 5% per year in the future. Shelby's common stock sells for $20.50...
XYZ’s stock paid $2.00 dividend last year. The company’s earnings and dividends are expected to grow...
XYZ’s stock paid $2.00 dividend last year. The company’s earnings and dividends are expected to grow at an annual rate of 5%. Given its risk, if the investors’ required rate of return on the stock is 15%, what is the market value of XYZ’s stock?
DMH Enterprise�s stock dividends are expected to grow at a rate of 25% for three years,...
DMH Enterprise�s stock dividends are expected to grow at a rate of 25% for three years, after which dividends are expected to grow at a constant rate of 10% forever. The company recently paid a dividend of $2 and the required rate of return on the stock is 12%, what is the stock�s current price? $115.41 $128.54 $144.15 $160.54 You are charged with the valuation of Hurst Company�s stock. You have access to the following information: Hurst dividends are expected...
Company Z prime's earnings and dividends per share are expected to grow by 2% a year. Its growth will stop after year 4 In year 5 and afterward it will pay out all eamings as dividends Assume next year's dividend is $6, the market capitalization rate is 12% and next year's EPS is $11. What is Z-prime's stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price
the answer of $62.17 is coming up wrong. thank you.
Company Z-prime's earnings and dividends per share are expected to grow by 4% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next year's dividend is $2, the market capitalization rate is 12% and next year's EPS is $9. What is Z-prime's stock price?
The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 7% per year in the future. Shelby's common stock sells for $23 per share, its last dividend was $2.00, and the company will pay a dividend of $2.14 at the end of the current year. . Using the discounted cash flow approach, what is is cost of equity? b. If the firm's beta is 1.6, the risk-free rate is 9%, and the expected return on the...
10. Company Z's earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year's dividend is $10 and the market capitalization rate is 8%. If company Z were to distribute all its earnings, it could maintain a level dividend stream of $15 a share(EPS-15) How much is the market actually paying per share for growth opportunities? (a) $122.90 (b) $137.55 (c) $145.83 (d) $157.44
The earnings, dividends, and stock price of
Shelby Inc. are expected to grow at 5% per year in the future.
Shelby's common stock sells for $20.50 per share, its last dividend
was $1.80, and the company will pay a dividend of $1.89 at the end
of the current year.
Problem 9-10 Cost of Equity The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 5% per year in the future. Shelby's common stock sells for $20.50...
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