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?
A company has just paid a $2.10 dividend per share. The dividend is expected to grow...
A company has just paid a $2 dividend per share. The dividend is expected to grow at a constant rate of 9% per year for 3 years. After that, the dividend is expected to keep growing at a constant rate of 3% per year. The required return is 9%. What will the stock price be in 2 years?
A company has just paid a $2 dividend per share. The dividend is expected to grow at a constant rate of 9% per year for 3 years. After that, the dividend is expected to keep growing at a constant rate of 3% per year. The required return is 9%. What will the dividend be in 4 years?
A company has just paid a $2 per share dividend. The dividends are expected to grow by 24% a year for 8 years. The growth rate in dividends thereafter is expected to stabilize at 4% a year. The appropriate annual discount rate for the company’s stock is 12%. a. What is the company’s current equilibrium stock price? b. What is the company’s expected stock price in 20 years?
21 points. Thomas Brothers just paid a $6.00 per share annual dividend. The dividend is expected to grow forever at a constant rate of 3 percent a year. The required rate of return on the common stock, res, is 11 percent. The current ratio is 1.95, the payout ratio is 40% and the tax rate is 35 %. a. What is your calculated value per share for the company's stock? b. If the current market price is $72.70 per share...
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?
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...
6. A stock has just paid 56 of dividend. The dividend is expected to grow at a constant rate of 9% year, and the common stock currently sells for $89. The before tax cost of debt is 6%, and the tax rate is 45%. The target capital structure consists of 35% debt and 62% common equity. What is the company's WACC if all the equity used is from retained earnings? 11.39% 12.07% 12 10485 10.02 1. A company just paid...
Super Carpeting Inc. (SCI) just paid a dividend (D₀) of $3.12 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.50% per year. If the required return (rss) on SCI’s stock is 16.25%, then the intrinsic value of SCI’s shares is per share. Which of the following statements is true about the constant growth model? When using a constant growth model to analyze a stock, if an increase in the required rate of...
A company just paid a dividend of $1.95 per share, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The company's beta is 1.65, the market risk premium is 8.5%, and the risk-free rate is 5.50%. What is the company's current stock price? $12.72 $13.56 $14.53 $15.64 $16.94
Chapter 9 2. Tresnan Brothers just paid a $1.73 per share dividend, and the dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 10%. What is the stock's current value per share?