The price of a share = Expected future dividend/ required rate of return. The past dividends do not affect the price of the share.
a. Price of stock (Jan, 2013) = 9/0.15 =$60
b. Price of stock (Jan, 2013) = 9/0.12 =$75
c. As the risk decreases, so thus the required rate of return on equity, driving the price of the shares upwards.
Q: Common stock value long Constant growth Personal Finance Problem Assume that today is January? 1,...
Please show calculations Common stock value-Constant growth Personal Finance Problem Over the past 6 years, Elk County Telephone has paid the dividends shown in the following table, E. The firm's dividend per share in 2020 is expected to be $3.02. a. If you can earn 13% on similar-risk investments, what is the most you would be willing to pay per share in 2019, just after the $2.87 dividend? b. If you can earn only 10% on similar-risk investments, what is...
Common stock value-Constant growth Personal Finance Problem Over the past 6 years, Elk County Telephone has paid the dividends shown in the following table, E. The firm's dividend per share in 2020 is expected to be $9.55. a. If you can earn 11% on similar-risk investments, what is the most you would be willing to pay per share in 2019, just after the $9.27 dividend? b. If you can earn only 8% on similar-risk investments, what is the most you...
Common stock value-Constant growth Personal Finance Problem Over the past 6 years, Elk County Telephone has paid the dividends shown in the following table, E. The firm's dividend per share in 2020 is expected to be $3.38. a. If you can earn 14% on similar-risk investments, what is the most you would be willing to pay per share in 2019, just after the $3.31 dividend? b. If you can earn only 11% on similar-risk investments, what is the most you...
Personal Finance Problem Common stock value: Constant growth Over the past 6 years, Elk County Telephone has paid the dividends shown in the following table. P7-12 Year 2019 2018 2017 2016 2015 2014 Dividend per share $2.87 2.76 2.60 2.46 2.37 2.25 The firm's dividend per share in 2020 is expected to be $3.02. a. If you can earn 13% on similar-risk investments, what is the most you would be willing to pay per share in 2019, just after the...
Over the past 6 years, Ell County Telephone has paid the dividends shown in the following table. The firms dividend per share in 2020 is expected to be $9.01. a. If you can earn 12% on similiar risk investments, what is the most you would be willing to pay per share in 2019, just after the $8.83 dividend? b. If you can earn only 9% on similar risk investments, what is the most you would be willing to pay per...
when we use the calculator for this problem, n=9, PV = -0.7, PMT = 0, and FV = 2.11 why is the PMT zero when the investors still receive dividend every year? can we use the CF function on calculator and input all divends. for ex, CF0 = 0.7, CF1 = 0.8, etc. Problem Johnson & Johnson paid the following dividends per share from 2001 to 2010: Johnson & Johnson Annual Dividends 2001 2002 2003 2001 2002 2003 2004 |...
1. Analyze the major challanges USB faced in the last 5 years, in your opinion, what were the crucial factors in the banks downturn? 2. what are the main triggers to change the banks approach to communication and what is different today regarding the dealings and relationship to its share-and stakeholders? 3. How would you evaluate the constant replacement of the banks chairman and CEO? 4. in view of the future strategy of USB, what are your suggestions in order...
1. Analyze the major challanges USB faced in the last 5 years, in your opinion, what were the crucial factors in the banks downturn? 2. what are the main triggers to change the banks approach to communication and what is different today regarding the dealings and relationship to its share-and stakeholders? 3. How would you evaluate the constant replacement of the banks chairman and CEO? 4. in view of the future strategy of USB, what are your suggestions in order...
Simply Cayenne Company: A Comprehensive Case In Measuring A Firm's Cost Of Capital (Boudreaux, D., S. Rao, and P. Das, 2014) THE CASE Patricia Hotard, the Chief Executive Officer of Simply Cayenne Refining and Processing Company (SCRPC), picked up the telephone to call Jimmy Breez, the firm's financial manager. Breez had sent her an email earlier that morning suggesting that the capital budgeting committee should get together prior to the scheduled Investment Decision Committee meeting that is in one week...
Using the book, write another paragraph or two: write 170 words: Q: Compare the assumptions of physician-centered and collaborative communication. How is the caregiver’s role different in each model? How is the patient’s role different? Answer: Physical-centered communication involves the specialists taking control of the conversation. They decide on the topics of discussion and when to end the process. The patient responds to the issues raised by the caregiver and acts accordingly. On the other hand, Collaborative communication involves a...