5. Suppose you know a company's stock currently sells for $20 per share and the required return on the stock is 0.13. You also know that the required return is evenly divided between the capital gains yield (G) and the dividend yield (D1/P0) (this means that if the required retun is 9%, the capital gains yield is 4.5% and the dividend yield is 4.5%).If it's the company's policy to always maintain a constant growth rate in its dividends, what is the next dividend per share? Answer with 2 decimals (e.g. 1.23)
1. The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.80 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. If investors require a 14 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price? Answer with 2 decimals (e.g. 10.12).
2. Far Side Corporation is expected to pay the following dividends over the next four years: $11, $5, $10, and $4. Afterward, the company pledges to maintain a constant 0.04 growth rate in dividends forever. If the required return on the stock is 0.13, what is the current share price? Answer with 2 decimals (e.g. 45.45).
3. E-Eyes.com Bank just issued some new preferred stock. The issue will pay a $15 annual dividend in perpetuity, beginning 16 years from now. If the market requires a 0.09 return on this investment, how much does a share of preferred stock cost today? Enter the answer with 2 decimals (e.g. 45.45).
4. Suppose you know a company's stock currently sells for $67 per share and the required return on the stock is 0.11. You also know that the required return is evenly divided between the capital gains yield (G) and the dividend yield (D1/P0) (this means that if the required retun is 9%, the capital gains yield is 4.5% and the dividend yield is 4.5%).If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? Answer with 2 decimals (e.g. 1.23)
5)
Capital Gains Yield =G = 13%/2 | 6.50% |
Dividend Yield = D1/P0 = | 6.50% |
D1 = Dividend Yield x P0 = 6.50% x $20 | $1.30 |
5. Suppose you know a company's stock currently sells for $20 per share and the required...
Suppose you know that a company's stock currently sells for $62 per share and the required return on the stock is 12 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? (Do not round Intermediate calculations and round your answer to 2 decimal places,...
Suppose you know that a company's stock currently sells for $68 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. It's the company's policy to always maintain a constant growth rate in its dividends. What is the current dividend per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...
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ems Saved Suppose you know that a company's stock currently sells for $67 per share and the required return on the stock is 10.8 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? (Do not round intermediate calculations and round your answer to 2 decimal places,...
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Suppose you know that a company’s stock currently sells for $66.00 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between capital gains yield and dividend yield. Required: If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Suppose you know that a company’s stock currently sells for $56 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? (Do not round intermediate calculations and round your answer to 2 decimal places,...
with process 102 15 Suppose you know a company's stock currently sells for $80 per share and the required return on the stock is 14 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. ings If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? 5.23 4.97 10.47 5.60 5.67 t- T-10