AA Co. has just paid a dividend of $0.52. Next year's dividend is expected to be...
A company has just paid its first dividend of $3.30. Next year's dividend is forecast to grow by 7 percent, followed by another 7 per cent growth in year two. From year three onwards dividends are expected to grow by 2.5 percent per annum, indefinitely. Investors require a rate of return of 12 percent p.a. for investments of this type. The current price of the share is (round to nearest cent)
A company has just paid its first dividend of $4.01. Next year's dividend is forecast to grow by 10 percent, followed by another 10 per cent growth in year two. From year three onwards dividends are expected to grow by 3.3 percent per annum, indefinitely. Investors require a rate of return of 18 percent p.a. for investments of this type. The current price of the share is (round to nearest cent)
A company has just paid its first dividend of $3.30. Next year's dividend is forecast to grow by 7 percent, followed by another 7 per cent growth in year two. From year three onwards dividends are expected to grow by 2.5 percent per annum, indefinitely. Investors require a rate of return of 12 percent p.a. for investments of this type. The current price of the share is (round to nearest cent) Select one: a. $38.66 b. $35.65 c. $22.26 d....
A company has just paid its first dividend of $0.76. Next year's dividend is forecast to grow by 9 percent, followed by another 9 per cent growth in year two. From year three onwards dividends are expected to grow by 2.1 percent per annum, indefinitely. Investors require a rate of return of 13 percent p.a. for investments of this type. The current price of the share is (round to nearest cent) Select one: a. $8.06 b. $7.36 c. $4.31 d....
Problem1: The XYZ Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4% per year indefinitely. Assume investorsrequire a return of 10.5 % on the XYZ Co. stock. What will the price be in 3 years? Show yourwork/calculations Problem2: The ABCorp. paid an annual dividend of $1.37 a share last month. Today, the company announced that future dividends will be increasing by 2.8 percent annually. If...
The Napa Co. just paid a dividend of $3.15 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. If investors require a return of 12 percent on the stock, what is the current price? What will the price be in four years?
The Stopperside Wardrobe Co. just paid a dividend of $1.45 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. If investors require an 11 percent return on The Stopperside Wardrobe Co. stock, what is the current price? What will the price be in three years? In 15 years?
Dolemite mines just paid a dividend of $2.00, its dividends are expected to grow at 5.00% forever. Investors required return on the stock is 13.00%. What is Dolemite's dividends for the next three years? Dividends Dividend in Year 1 Dividend in Year 2 If you were going to buy the stock today and sell it next year, at what price would you expect to sell the stock for, assuming the growth rate and required return remains unchanged? Stock Price in...
The Brennan Co. just paid a dividend of $2.50 per share on its stock. The dividends are expected to grow at a constant rate of 7% per year indefinitely. Brennan Co. investors require a 12% return on their stock. a. What is the current price of a share of Brennan Co. Stock? b. What will be the price of a share in of Brennan Co. Stock in 5 years? c. What will be the price of a share of Brennan...
The Timberlake Orchard Co just paid a dividend of $7 per share. The dividend is expected to grow at a rate of 5% for the next three years. In year four and five it will grow at a rate of 4% per year. The growth rate of dividend is expected to be constant 6 percent indefinitely from year six. The required rate of return is 13 percent. What is the current share price? (Show all your computations)