8. ABC Co. has paid annual dividends in the past five years of $.20, $.25, $.28,...

Question

Question

8. ABC Co. has paid annual dividends in the past five years of $.20, $.25, $.28, S.33, and $.36. Calculate the average growth rate of its dividends.

Answer 1

Similar Homework Help Questions

The ABC Co. has paid annual dividends of $0.30, $0.64, $1.20, and $1.45 over the past...

The ABC Co. has paid annual dividends of $0.30, $0.64, $1.20, and $1.45 over the past four years. Dividends in the future are expected to grow at a constant rate of 3.5%. Which one of the following formulas should be used to compute the value of the stock today? a.P0 = D1/(1 + r)1+ D2/(1 + r)2... + Dn/(1 + r)n+ Pn/(1 + r)n b.P0 = D/r c.P0 = D1/(1 + r)n+ g d.P0 = D1/(r - g) e.P0 =...
Highway Express has paid annual dividends of $1.32, $1.33, $1.38, $1.40, and $1.42 over the past...

Highway Express has paid annual dividends of $1.32, $1.33, $1.38, $1.40, and $1.42 over the past five years, respectively. What is the average dividend growth rate? =1.85% Please check the answers and show all work typed out. No excel or grid style please as I am on mobile.
1. Over the past 5 years, DL Insulation has paid annual dividends of $1.40, $1.55, $1.70,...

1. Over the past 5 years, DL Insulation has paid annual dividends of $1.40, $1.55, $1.70, $1.73, and $1.77 per share. What is the geometric average dividend growth rate for this period? A. 4.80 percent B. 5.79 percent C. 5.88 percent D. 6.04 percent E. 6.33 percent 2.A firm has a current book value per share of $21.10 and a market price per share of $37.57. Next year's earnings are expected to be $5.60 per share and the expected earnings...

ABC paid dividends of:$2,500, $0, $1,500 and $2,000 over the first four years of the company's...

ABC paid dividends of:$2,500, $0, $1,500 and $2,000 over the first four years of the company's existence. If Retained Earnings after year four has an ending balance of $8,000, what is the average annual amount of net income (loss) over the past four years for ABC?
Suppose that ABC Co. will not pay any dividends for the next few years, and the...

Suppose that ABC Co. will not pay any dividends for the next few years, and the first dividend of $3.2 will be paid at the end of year 2. Assume the dividend growth rate and the required return on the stock are 4.9% and 11.2%, respectively. Calculate the current price of each share of ABC's stock.
The Mintcoin Inc has just paid an annual dividend of 40 cents per share. You forecast...

The Mintcoin Inc has just paid an annual dividend of 40 cents per share. You forecast that dividends of Mintcoin Inc will grow at the rate of 25% a year over the next four-year period. From year five on, you expect the subsequent growth rate of dividends to decrease to 8%, the industry average If the required rate of return for the stock is 12%, calculate its price.

XL Co.’s dividends are expected to grow at a 20% rate for the next 3 years,...

XL Co.’s dividends are expected to grow at a 20% rate for the next 3 years, with the growth rate falling off to a constant 6% thereafter. If the required return is 14% and the company just paid a $3.10 dividend, what is the current price?XL Co.’s dividends are expected to grow at a 20% rate for the next 3 years, with the growth rate falling off to a constant 6% thereafter. If the required return is 14% and the...
4. The current stock price of ABC, Corp. is $300 per share. ABC, Corp. just paid...

4. The current stock price of ABC, Corp. is $300 per share. ABC, Corp. just paid an annual per share dividend of $3. Over the past 5 years, this dividend has been grown annually at a rate of 35%. A respected analyst assumes that the current growth rate of dividends will hold up for the next 5 years, after which dividend growth will slow to 8% annually. Use the solver in Excel to compute the cost of equity? A. 32.76%...
ABC Co.. just paid a dividend of $1.69 per share on its stock. The dividends are...

ABC Co.. just paid a dividend of $1.69 per share on its stock. The dividends are expected to grow at a constant rate of 7.2% per year indefinitely. If investors require an 12.2% return on ABC Co.. stock, answer the following: (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) What will the price be in 15 years?

ABC Co.. just paid a dividend of $1.65 per share on its stock. The dividends are...

ABC Co.. just paid a dividend of $1.65 per share on its stock. The dividends are expected to grow at a constant rate of 7.0% per year indefinitely. If investors require an 12.0% return on ABC Co., stock, answer the following: (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) What will the price be in three years?