ZuoTi.Pro
Question

Stocks and Bonds, Inc. is planning on paying an annual dividend of $1.55, $1.63, and $1.65...

Stocks and Bonds, Inc. is planning on paying an annual dividend of $1.55, $1.63, and $1.65 a share over the next three years, and at the end of year three, you believe you will be able to sell the shares for $16 per share. What is the market price for a share of this stock if the market required rate of return, or discount rate is 11%?

$15.62

$13.98

$17.16

$13.10

$14.07
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

139 3939 13.2294457 + .55 t 1.39639639+1.32244457 +18905523879 15.62 ebiton A

0 0
Add a comment
Know the answer?
Add Answer to:
Stocks and Bonds, Inc. is planning on paying an annual dividend of $1.55, $1.63, and $1.65...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • kL airlines paid an annual dividend of 1.42 a share last month. the company is planning...

    kL airlines paid an annual dividend of 1.42 a share last month. the company is planning on paying 1.50, 1,75 and 1.80 a share over the next three years, respectively .after that, the dividend will constant at 2.00 a share per year. what is the market price of this stock if the market rate of return is 10.5 percent.

  • FINA Inc.’s assets are $500 million, financed through bank loans, bonds, preferred stocks and common stocks....

    FINA Inc.’s assets are $500 million, financed through bank loans, bonds, preferred stocks and common stocks. The amounts are as follows: Bank loans: $ 100 million borrowed at 9% Bonds: $180 million, paying 9% coupon with semi-annual payments, and maturity of 5 years. FINA sold its $1,000 par-value bonds for $940 and had to incur $40 flotation cost per bond. Preferred Stocks: $20 million, paying $15 dividends per share. FINA sold its preferred shares for $210 and had to incur...

  • Chen Inc. announced today that it will begin paying annual dividends. The first dividend will be...

    Chen Inc. announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.75 a share. The following dividends will be $1.00, $1.10, and $1.20 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3% per year. How much are you willing to pay to buy one share of this stock if your desired rate of return is 6%? Please show all...

  • Assignment Chapter 12 -Investing in Stocks and Bonds 4. Paying taxes on stocks What It Means...

    Assignment Chapter 12 -Investing in Stocks and Bonds 4. Paying taxes on stocks What It Means to Invest in Stocks? Common stock is considered to be one of the most popular investment vehicles for long-term wealth building earn income from common stock in the form of dividends and/or capital gains. As an investor it is Investors important to understand the implications of investing in stocks from a tax perspective 7.97 per share. Last Two years ago, Xavier purchased 100 shares...

  • Debt-free, Inc., an unlevered firm, is planning to use debt in its capital structure. The firm...

    Debt-free, Inc., an unlevered firm, is planning to use debt in its capital structure. The firm currently has 5,000 shares outstanding trading at $60 per share. The firm plans to sell 150 6% annual-coupon, 10-year bonds at their face values of $1,000 each and use the proceeds to repurchase some of its shares. When the bonds mature, Debt-free, Inc. plans to reissue new bonds to pay off the principal and to “roll over” its debt this way indefinitely. Assume the...

  • Miller Brothers Hardware paid an annual dividend of $1.55 per share last month. Today, the company...

    Miller Brothers Hardware paid an annual dividend of $1.55 per share last month. Today, the company announced that future dividends will be increasing by 3.40 percent annually. If you require a 8.7 percent rate of return, how much are you willing to pay to purchase one share of this stock today? Teder Corporation stock currently sells for $100 per share. The market requires a 12 percent return on the firm's stock. If the company maintains a constant 6 percent growth...

  • A company's stock pays an annual dividend that is expected to increase by 9% annually. The...

    A company's stock pays an annual dividend that is expected to increase by 9% annually. The stock commands a market rate of return of 12% and sells for $60.50 a share. What is the expected amount of the next dividend to be paid on the stock? Battery Co. will pay an annual dividend of $2.08 a share on its common stock next year. Last week, the company paid a dividend of $2.00 a share. The company adheres to a constant...

  • Value and Price You plan on holding a stock for two years. The annual dividend per...

    Value and Price You plan on holding a stock for two years. The annual dividend per share is $0.64 and you believe you will be able to sell the stock in two years for $38.00. You believe this stock should pay a 12% rate of return per year. If the stock is currently priced at $34.00 the stock is

  • 1) Tech Pro Inc's assets are $500 million, financed through bank loans, bonds, preferred stocks and...

    1) Tech Pro Inc's assets are $500 million, financed through bank loans, bonds, preferred stocks and common stocks. The amounts are as follows: Bank loans: $ 100 million borrowed at 9% Bonds: $180 million, paying 9% coupon with semi-annual payments, and maturity of 12 years. FINA sold its $1,000 par value bonds for $940 and had to incur $40 floatation cost per bond. Preferred Stocks: $20 million, paying $15 dividends per share. FINA sold its preferred shares for $210 and...

  • FINA Company's assets are $750 million, financed through bank loans, bonds, preferred stocks, and common stocks....

    FINA Company's assets are $750 million, financed through bank loans, bonds, preferred stocks, and common stocks. The amounts are as follows: Bank loans: $ 100 million borrowed at 3% Bonds: $280 million, paying 8% coupon with semi- annual payments, and maturity of 10 years. FINA sold its $1,000 par-value bonds for $970 and had to incur $20 flotation cost per bond. Preferred Stocks: $120 million, paying $15 dividends per share. FINA sold its preferred shares for $220 and had to...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT