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please help, I will thumbs up! The directors of MJ Inc. expect to pay a dividend...
The CEO of ICG Inc. announced that the company will pay an annual dividend of $1.00 per year, one year from today. It is estimated that during the following six years, the dividend will grow at an annual rate of 7% After that, the growth rate will be equal to 4% per year and continue at that rate indefinitely. Calculate the intrinsic value of the ICG's stock if the required rate of return is 6.7%.
(a) Union Pacific currently does not pay a dividend. You expect that the company will begin paying a dividend of $2 per share in 6 years, and you expect dividends to grow indefinitely at a 3.5% rate per year thereafter. If the required rate of return is 12 percent, how much is the stock currently worth? [8 Points) (b) Walmart Inc. just paid a dividend of do = $2.08 per share. The dividends are expected to grow at a rate...
A company just paid a dividend of $1.70 per share. You expect the dividend to grow 13% over the next year and 9% two years from now. After two years, you have estimated that the dividend will continue to grow indefinitely at the rate of 4% per year. If the required rate of return is 12% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)
Eastwood, Inc., has an unusual dividend policy. The company will pay a dividend of $7, $16, $13, and $2.75 for each of the next four years, respectively. Afterwards, the company has pledged to increase dividends by 5 percent per year indefinitely. If the required return on the company is 11 percent, how much should you pay for the stock today? Dividend in Year 1 $ 7.00 Dividend in Year 2 $ 16.00 Dividend in Year 3 $ 13.00 Dividend in...
cascade industries inc. intends to pay a common stock dividend of $3.18 one year from today and the firm anticipates that the dividend will continue to grow at a rate of 2% per year indefinitely. if the firm has a 13% required rate of return, what is the current price per share of stock?
Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, D0 = 4.00). The dividends of Robotic Atlanta are expected to grow at a rate of 20 percent next year (that is, g1 = .20) and at a rate of 10 percent the following year (that is, g2 = .10). Thereafter (i.e., from year 3 to infinity) the growth rate in dividends is expected to be 5 percent per year. Assuming the required rate of return on...
A stock is expected to pay a dividend of $2.00 at the end of the year (i.e., D1 = $2.00), and it should continue to grow at a constant rate of 6% a year. If its required return is 15%, what is the stock's expected price 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.
The Miller Corp. will pay an annual dividend of $1.50 one year from now. Analysts expect this dividend to grow at 12% per year thereafter until the 3rd year. After then, growth will level off at 4% per year forever. What is the value of its stock today if the firm’s required return is 20%?
please answer both and show work! Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, DO 4.00). The dividends of Robotic Atlanta are expected to grow at a rate of 20 percent next year (that is, g1 .20) and at a rate of 10 percent the following year (that is, g2 = .10). Thereafter (i.., from year 3 to infinity) the growth rate in dividends is expected to be 5 percent per year. Assuming the required...
A stock is expected to pay a dividend of $2.50 at the end of the year (i.e., D1 = $2.50), and it should continue to grow at a constant rate of 4% a year. If its required return is 13%, what is the stock's expected price 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $ Tresnan Brothers is expected to pay a $2.00 per share dividend at the end of the year...