1. AXY Company is expected to pay an annual dividend of $1.6 per share next year...
1. AXY Company is expected to pay an annual dividend of $1.6 per share next year and then pay a final liquidating divided of $25 per share the following year. Currently, you own 350 shares of the Golden Cage. What is the current value of your shares if the required return is 10 percent?
Homework Answers
Current price = Presnet value of future cash flows
Current price = 1.6 / (1 + 0.1)1 + 25 / (1+ 0.1)2
Current price = 1.454545 + 20.661157
Current price = 22.1157
Current value = 350 * 22.1157
Current value = $7,740.50
Add Answer to:
1. AXY Company is expected to pay an annual dividend of $1.6 per
share next year...
A stock expects to pay a dividend of $3.72 per share next year. The dividend is...
A stock expects to pay a dividend of $3.72 per share next year. The dividend is expected to grow at 25 percent per year for three years followed by a constant dividend growth rate of 4 percent per year in perpetuity. What is the expected stock price per share 5 years from today, if the required return is 12 percent?
Suppose that your company is expected to pay a dividend of $1.50 per share next year....
Suppose that your company is expected to pay a dividend of $1.50 per share next year. There has been a steady growth in dividends of 5.1% per year and the market expects that to continue. What is the current price of the stock if the required return is 10%? Price=
A stock expects to pay a dividend of $4.07 per share next year. The dividend is...
A stock expects to pay a dividend of $4.07 per share next year. The dividend is expected to grow at 25 percent per year for four years followed by a constant dividend growth rate of 6 percent per year in perpetuity. What is the expected stock price per share 10 years from today, if the required return is 13 percent? A. $177 B. $190 CC. $201 CD. $163
New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $5.05 per share...
New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $5.05 per share exactly 10 years from today. After that, the dividends are expected to grow at 3.8 percent forever. If the required return is 11.6 percent, what is the price of the stock today? Multiple Choice $21.61 $64.74 $46.28 $28.13 42411 20 of 20 <Prev Next Help Save & Exit Submit Brickhouse is expected to pay a dividend of $2.55 and $2.22...
Golden Growth Model Goooog Corporation will pay a $3.56 per share dividend next year. The company...
Golden Growth Model Goooog Corporation will pay a $3.56 per share dividend next year. The company pledges to increase its dividend by 3.75 percent per year indefinitely. If you require an 11 percent return on your investment, how much will you pay for the company's stock today? 4)
1) Firm ABC is going to pay an annual dividend of $2.00 per share next year....
1) Firm ABC is going to pay an annual dividend of $2.00 per share next year. Management just announced that future dividends will increase by 2 percent annually. What is the amount of the expected dividend in year 5? 2) Firm ABC is going to pay an annual dividend of $2.00 per share next year. Management just announced that future dividends will increase by 5 percent annually in the first two years and 2 percent annually afterwards. What is the...
Business Calculators Inc. will pay an annual dividend of $2.25 per share next year. The company...
Business Calculators Inc. will pay an annual dividend of $2.25 per share next year. The company just announced that future dividends will be increasing by 0.75 percent annually. How much are you willing to pay for one share of this stock if you require a rate of return of 12.25 percent? Multiple Choice
The Uptowner will pay an annual dividend of $3.26 a share next year with future dividends...
The Uptowner will pay an annual dividend of $3.26 a share next year with future dividends increasing by 2.8 percent annually. What is the market required rate of return if the stock is currently selling for $49.10 a share?
XYZ, Inc. is expected to pay a dividend of $0.87 per share next year and $1.15...
XYZ, Inc. is expected to pay a dividend of $0.87 per share next year and $1.15 per share the year after that. At the end of the second year, the estimate value of the stock is $16.90. Your required return is 8.30%. What is your estimate of this stock’s current value using the dividend discount model? Give your response to two decimal places.
White Wedding Corporation will pay a $2.40 per share dividend next year. The company pledges to...
White Wedding Corporation will pay a $2.40 per share dividend next year. The company pledges to increase its dividend by 7.10 percent per year indefinitely. Required: If you require an 10.2 percent return on your investment, how much will you pay for the company's stock today? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) Current share price $
A stock expects to pay a dividend of $4.07 per share next year. The dividend is expected to grow at 25 percent per year for four years followed by a constant dividend growth rate of 6 percent per year in perpetuity. What is the expected stock price per share 10 years from today, if the required return is 13 percent? A. $177 B. $190 CC. $201 CD. $163
New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $5.05 per share exactly 10 years from today. After that, the dividends are expected to grow at 3.8 percent forever. If the required return is 11.6 percent, what is the price of the stock today? Multiple Choice $21.61 $64.74 $46.28 $28.13 42411 20 of 20 <Prev Next Help Save & Exit Submit Brickhouse is expected to pay a dividend of $2.55 and $2.22...
Golden Growth Model Goooog Corporation will pay a $3.56 per share dividend next year. The company pledges to increase its dividend by 3.75 percent per year indefinitely. If you require an 11 percent return on your investment, how much will you pay for the company's stock today? 4)
Business Calculators Inc. will pay an annual dividend of $2.25 per share next year. The company just announced that future dividends will be increasing by 0.75 percent annually. How much are you willing to pay for one share of this stock if you require a rate of return of 12.25 percent? Multiple Choice
Most questions answered within 3 hours.
-
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 2 hours ago -
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 13 minutes ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 1 hour ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 1 hour ago -
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 38 minutes ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 1 hour ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 2 hours ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 2 hours ago -
C ++ Implement cat command
The purpose of this assignment is to provide practice using the...
asked 2 hours ago -
we
convert sugars into another form of stored potential energy. This
is called?
asked 3 hours ago -
The manufacturers of Oriental Spice Sauce are concerned that the
sodium levels in their product vary...
asked 3 hours ago -
PLEASE DON'T ANSWER IF YOU CAN'T ANSWER ALL OF THE QUESTIONS. I
DESPERATELY NEED HELP
Consider...
asked 4 hours ago