Gas Co., Inc. just paid a dividend of $2.05. They maintain a constant growth rate of 4% and the stock is currently selling for $35. What is the required return?
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Gas Co., Inc. just paid a dividend of $2.05. They maintain a constant growth rate of...
Storico Co. just paid a dividend of $2.05 per share. The company will increase its dividend by 24 percent next year and then reduce its dividend growth rate by 6 percentage points per year until it reaches the industry average of 6 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company's stock is 10 percent, what will a share of stock sell for today? (Do not round intermediate...
Storico Co. just paid a dividend of $2.05 per share. The company will increase its dividend by 24 percent next year and will then reduce its dividend growth rate by 6 percentage points per year until it reaches the industry average of 6 percent dividend growth, after which the company will keep a constant growth rate forever. If the stock price is $57.63, what required return must investors be demanding on Storico stock? (Hint: Set up the valuation formula with...
1A stock is expected to maintain a constant dividend growth rate of 4.9 percent indefinitely. If the stock has a dividend yield of 6.2 percent, what is the required return on the stock? 9.2% 10.4% 9.9% 10.4% 11.1%2A stock just paid a dividend of $5.13 and is expected to maintain a constant dividend growth rate of 4.1 percent indefinitely. If the current stock price is $71, what is the dividend yield the stock has? 10.85% 11.62% 9.91% 10.76% o 7.52%
Non-Constant Growth (LO1) Holyrood Co. just paid a dividend of $2.45 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on Holyrood stock is 11 percent, what will a share of stock sell for today?
solve by hand please
32. Non-Constant Growth (L01) Holyrood Co. just paid a dividend of $2.45 per share. The company will increase its dividend by 20% next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5% dividend growth, after which the company will keep a constant growth rate forever. If the required return on Holyrood stock is 11%, what will a share of stock sell for...
1.Golf World has a constant dividend growth rate of 10% and has just paid a dividend (D0) of $5.00. If the required rate of return is 15%, what will the stock sell for one year from now? A) $90.00 B) $95.50 C) $ 100.00 D) $121.00 2.The dividend yield on AAA’s common stock is 5%. The company just paid a $4 dividend (D0), which will be $4.40 next year. The dividend growth rate (g) is expected to remain constant at...
5. Constant growth stocks Super Carpeting Inc. (SCI) just paid a dividend (D ) of $1.44 per share, and its annual dividend is expected to grow at a constant rate (9) of 3.00% per year. If the required return (T) on SCI's stock is 7.50%, then the intrinsic value of SCI's shares is per share. Which of the following statements is true about the constant growth model? When using a constant growth model to analyze a stock, if an increase...
DBP Inc. just paid a dividend of $1.10. The expected growth rate of dividend is 8 percent. The required return for investors in the first three years is 20 percent and 15 percent for the following three years. After those six years, the required return is 10 percent. What is the current share price of the stock? A. $40.67 B. $36.98 C. $41.77 D. $39.12
Glenhill Co. is expected to maintain a constant 6.0% growth rate in its dividends indefinitely. If the company has a dividend yield of 7.8%, what is the required return on the company's stock? (Round the final answer to 2 decimal places.) Required return %
A stock is expected to maintain a constant dividend growth rate of 4.4 percent indefinitely. If the stock has a dividend yield of 5.7 percent, what is the required return on the stock?