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.
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The Mintcoin Inc has just paid an annual dividend of 40 cents
per share. You forecast...
32. Spring Break, Inc. just paid an annual dividend (DC) of $2.00 per share on earnings...
32. Spring Break, Inc. just paid an annual dividend (DC) of $2.00 per share on earnings of $3.00. You expect the firm's dividends to grow at 25% over the next two years based on its expansion plans. After that you expect dividends to grow at the industry average of 6% per year. The riskfree rate is 4%, the market risk premium is 5%, and its beta is 1.1. a) What is the discount rate? (2 pts) b) What is the...
19. Hideki Corporation has just paid a dividend of $4.5 per share. Annual dividends are expected...
19. Hideki Corporation has just paid a dividend of $4.5 per share. Annual dividends are expected to grow at a rate of 4 percent per year over the next four years. At the end of four years, shares of Hideki Corporation are expected to sell for $90. If the required rate of return is 12 percent, what is the intrinsic value of Hideki Corporation's share?
Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's...
Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 5% forever. Its stock price is $37.4 and its beta is 1.3. The risk-free rate is 2% and the expected return on the market portfolio is 8%. Part 1 What is the best guess for the cost of equity?
The Timberlake Orchard Co just paid a dividend of $7 per share. The dividend is expected...
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)
Four years ago, Bling Diamond, Inc., paid a dividend of $1.85 per share. The company paid...
Four years ago, Bling Diamond, Inc., paid a dividend of $1.85 per share. The company paid a dividend of $2.27 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the last four years. Thereafter, dividends will grow at 7 percent per year. What will the company’s cash dividend be in seven years?
A company just paid a dividend of $1.70 per share. You expect the dividend to grow...
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.)
A company has just paid its first dividend of $3.30. Next year's dividend is forecast to...
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...
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)
2. Rate of return implied in stock price A corporation has just paid a dividend of...
2. Rate of return implied in stock price A corporation has just paid a dividend of $5.00, i.e. Do=$5.00. Due to its growth potential, its dividends are expected to grow at 5% per year starting with the next dividend. If Jerry decides to buy the stock at the current market price $42, what rate of return will he earn? 3. Find the intrinsic value of a share of common stock A corporation has not paid dividend in the past and...
Finco is a new firm that just paid an annual dividend of $1 a share. The...
Finco is a new firm that just paid an annual dividend of $1 a share. The firm plans to increase its dividend by 20% per year for the next four years and then decrease the growth rate to 5% annually. If the required rate of return is 10%, what is one share of this stock worth today? $35.77 $34.77 $32.07 $48.59 $43.60
32. Spring Break, Inc. just paid an annual dividend (DC) of $2.00 per share on earnings of $3.00. You expect the firm's dividends to grow at 25% over the next two years based on its expansion plans. After that you expect dividends to grow at the industry average of 6% per year. The riskfree rate is 4%, the market risk premium is 5%, and its beta is 1.1. a) What is the discount rate? (2 pts) b) What is the...
19. Hideki Corporation has just paid a dividend of $4.5 per share. Annual dividends are expected to grow at a rate of 4 percent per year over the next four years. At the end of four years, shares of Hideki Corporation are expected to sell for $90. If the required rate of return is 12 percent, what is the intrinsic value of Hideki Corporation's share?
2. Rate of return implied in stock price A corporation has just paid a dividend of $5.00, i.e. Do=$5.00. Due to its growth potential, its dividends are expected to grow at 5% per year starting with the next dividend. If Jerry decides to buy the stock at the current market price $42, what rate of return will he earn? 3. Find the intrinsic value of a share of common stock A corporation has not paid dividend in the past and...
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