The James Company is expected to pay a total of $1.86 in dividends next year. Their...
The James Company is expected to pay a total of $1.86 in dividends next year. Their dividends are expected to increase by 3% annually. James Company stock is selling for $17.54 a share. What is the capitalization rate on this stock?
Homework Answers
![Price = D1/(ke-g) = $17.54 D1 = $1.86 3.00% ke - g = 10.60% (1.86/17.54] Capitalization rate = ke = 13.60% 13% +10.60% ]](http://img.homeworklib.com/questions/2f6681c0-208c-11eb-b78e-999f8f5f893d.png?x-oss-process=image/resize,w_560)
Add Answer to:
The James Company is expected to pay a total of $1.86 in
dividends next year. Their...
29. Future Motors is expected to pay a $3.30 a share annual dividend next year. Dividends...
29. Future Motors is expected to pay a $3.30 a share annual dividend next year. Dividends are expected to increase by 2.75 percent annually. What is one share of this stock worth to you today if your required rate of return is 15 percent? A. $24.56 B. $25.06 C. $26.60 D. $26.9430. 30. You cannot attend the shareholder's meeting for AlphaUnited so you authorize another shareholder to vote on your behalf. What is the granting of this authority called? A....
The Uptowner will pay an annual dividend of $3.26 a share next year with future dividends...
The Uptowner will pay an annual dividend of $3.26 a share next year with future dividends increasing by 2.8 percent annually. What is the market required rate of return if the stock is currently selling for $49.10 a share?
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
14. Suppose a company will pay the following dividends for the next three years. Year Expected...
14. Suppose a company will pay the following dividends for the next three years. Year Expected Dividend 1 $2 2 $3 3 $4 After the third year, the dividend will grow at a constant rate of 6% per year, the required return is 12%. What is the stock value today?
Zombie Manufacturing Company is expected to pay a dividend of $3.44 in the upcoming year. Dividends...
Zombie Manufacturing Company is expected to pay a dividend of $3.44 in the upcoming year. Dividends are expected to grow at 5.9% per year. The risk-free rate of return is 2%, and the expected return on the market portfolio is 9.2%. Investors use the CAPM to compute the market capitalization rate and use the constant-growth dividend discount model to determine the value of the stock. The stock's current price is $99. What is your estimate for the market capitalization rate...
A firm is expected to pay a dividend of $1.00 next year. Dividends are expected to...
A firm is expected to pay a dividend of $1.00 next year. Dividends are expected to grow by 20% the year after that. For the next two years dividends will grow by 15% each year. Thereafter the dividends are only expected to grow by 5% each year. The appropriate required rate of return for this investment is 15%? What is the fair price of the stock today?
Bennoch Corporation is expected to pay $2 dividends per share next year (year 1) to its...
Bennoch Corporation is expected to pay $2 dividends per share next year (year 1) to its shareholders. Its required rate of return on equity is 10%. Dividends are expected to grow at 5% per year for year 2 through year 3, and then slow down to a steady long-term growth rate of 2% for year 4 and beyond. What is the fair value of its stock price today?
Non- constant growth A stock is expected to pay a dividend of $8 next year and...
Non- constant growth A stock is expected to pay a dividend of $8 next year and this will increase by $2 for each of the following 3 years. after that, the company is expected to pay no dividends to its shareholders. if the required rate of return is 11% on this stock, what is the current stock price?
Company Hector said today that they will begin paying annual dividends next year. The first dividend...
Company Hector said today that they will begin paying annual dividends next year. The first dividend will be $0.15 a share. The following dividends will be $0.25, $0.35, and $0.60 a share annually for the following 3 years respectively. After that, dividends are projected to increase by 4 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 10 percent?
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
Most questions answered within 3 hours.
-
In C++ Programming, Try using loops only.
This lab demonstrates the use of the While Loop...
asked 27 minutes ago -
Effect of DCMU and sodium azide on Chlamydomonas? We did an
experiment where we had Chlamydomonas...
asked 1 hour ago -
1a) According to the ideal gas law, _______________.
a. a gas has infinite volume at absolute...
asked 2 hours ago -
Oakdale Fashions, Inc. had $245,000 in 2018 taxable income.
Using the tax schedule in Table 2.3...
asked 3 hours ago -
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 4 hours ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 4 hours ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 5 hours ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 5 hours ago -
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 6 hours ago -
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 6 hours ago -
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 7 hours ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 7 hours ago