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Milt ar Corporation will pay a year-end dividend of S4 and dividends hereafter are expected to...
Miltmar Corporation will pay a year-end dividend of $5, and dividends thereafter are expected to grow at the constant rate of 6% per year. The risk-free rate is 5%, and the expected return on the market portfolio is 10%. The stock has a beta of 0.76. a. Calculate the market capitalization rate. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Market capitalization rate % b. What is the intrinsic value of the stock? (Do not round...
Bravissimi, Inc. is going to pay a dividend of $4, and the dividends are expected to grow at a constant rate of 5% every year. The beta of Bravissimi's stock will be constant at 0.62. The T-bill rate is currently estimated to be 5%, and the return of S&P500 index is expected to be 12%. a. What rate of return Bravissimi's investors require? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Market Capitalization rate = ?...
A firm is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock has a beta of 0.5. Using the constant-growth DDM, the intrinsic value of the stock is ________. $100 $50 $200 $150
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...
The Compreses Corp has just paid a dividend of $0.5 per share. Dividends are expected to grow indefinitely at a constant rate of 6% per year. The risk-free rate is 4%, and the expected return on the market portfolio is 12%. The stock has a beta of .75. What is the intrinsic value of Compreses Corp?
Miltmar corporation will pay a year-end dividends of $3, and dividends thereafter are expected to grow at the constant rate of 5% per year. the risk-free rate is 5%, and the expected return on the market portofolio is 10%. the stock has a beta of 0.85
The FI Corporation's dividends per share are expected to grow indefinitely by 6% per year a. If this year's year-end dividend is $9 and the market capitalization rate is 12% per year, what must the current stock price be according to the DDM? (Do not round intermediate calculations. Round your answer to 2 decimal places.]) Current stock price b. If the expected earnings per share are $15, what is the implied value of the ROE on future investment opportunities? (Do...
A stock is expected to pay a dividend of $1.00 at the end of the year (i.e., D1 = $1.00), and it should continue to grow at a constant rate of 5% a year. If its required return is 13%, what is the stock's expected price 1 year from today? Do not round intermediate calculations. Round your answer to the nearest cent. $ ___________________________________________________________________________________-- Holtzman Clothiers's stock currently sells for $39.00 a share. It just paid a dividend of $1.00...
A stock is expected to pay a dividend of $1.50 at the end of the year (.e., Di = $1.50), and it should continue to grow at a constant rate of 3% a year. If its required return is 15%, what is the stock's expected price 1 year from today? Do not round intermediate calculations. Round your answer to the nearest cent. Tresnan Brothers is expected to pay a $2.20 per share dividend at the end of the year (I.e.,...
Suppose that a companies stock is expected to pay a dividend of $0.75 at the end of the year and that the dividend is expected to grow at a rate of 7%. The company’s current beta is 1.9, the current risk-free rate is 2.5% and the market risk premium is 8%. What is the intrinsic value of this stock? $4.24 $10.71 None of these $7.50 $7.01