The stock of Robotic Atlanta Inc. is trading at $ 32.32 per share. In the past,...
The stock of Robotic Atlanta Inc. is trading at $ 32.32 per share. In the past, the firm has paid a constant dividend of $ 4.18 per share and it has just paid an annual dividend (i.e., D0 = 4.18 ). However, the company will announce today new investments that the market did not know about. It is expected that with these new investments, the dividends will grow at 8.1 % forever. Assuming that the discount rate remains the same, what will be the price of the stock after the announcement? Calculate your answer to the nearest penny, do not use the $ sign in your answer.
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The stock of Robotic Atlanta Inc. is trading at $ 32.32 per
share. In the past,...
2. The common stock ABC Co. is trading at $40 per share. In the past the...
2. The common stock ABC Co. is trading at $40 per share. In the past the company has paid a constant dividend of $ 6 per share. However, the company has just announced new investments that the market did not know about. The market expects that with these new investments, the dividends should grow at 4% per year forever. Assuming that the investors required rate of rett (discount rate) remain the same, what will be the price of the stock...
The common stock Dell Co. is trading at $21 per share. The company has paid a...
The common stock Dell Co. is trading at $21 per share. The company has paid a constant dividend of $2 per share. However, the company has just announced new investments that the market did not know about. The market expects that with these new investments, the dividends should grow at 2 percent per year forever. Assuming that the cost of equity remains the same, what will be the price of the stock after the announcement?
Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, D0 = 4.00)....
Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, D0 = 4.00). The dividends of Robotic Atlanta are expected to grow at a rate of 20 percent next year (that is, g1 = .20) and at a rate of 10 percent the following year (that is, g2 = .10). Thereafter (i.e., from year 3 to infinity) the growth rate in dividends is expected to be 5 percent per year. Assuming the required rate of return on...
please answer both and show work! Robotic Atlanta Inc. just paid a dividend of $4.00 per...
please answer both and show work!
Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, DO 4.00). The dividends of Robotic Atlanta are expected to grow at a rate of 20 percent next year (that is, g1 .20) and at a rate of 10 percent the following year (that is, g2 = .10). Thereafter (i.., from year 3 to infinity) the growth rate in dividends is expected to be 5 percent per year. Assuming the required...
Assume a corporation has just paid a dividend of $ 2.13 per share. The dividend is...
Assume a corporation has just paid a dividend of $ 2.13 per share. The dividend is expected to grow at a rate of 2.4% per year forever, and the discount rate is 8.1%. What is the dividend yield of this stock?
The CI Corp. has just paid a cash dividend of $2 per share. If investors require 16% return from investments such as this
Ex 4) The CI Corp. has just paid a cash dividend of $2 per share. If investors require 16% return from investments such as this and the dividend is expected to grow at a steady 8% per year, what is the current value of the stock? What will the stock be worth in 5 years, given the same assumptions about the required return and the dividends? Answer: $27; $39.67Ex 5) A stock is selling for $40 per share currently. The...
30. The stock of Cabbor, Incorporated is trading at $70.00 per share. The company just paid...
30. The stock of Cabbor, Incorporated is trading at $70.00 per share. The company just paid a dividend of $5.00 per share that is, Do = 5.00). The growth rate in dividends is projected to be 6 percent per year forever. What is Cabbor's cost of equity capital (that 15, compute the required rate of return on the stock)?
Woidtke Manufacturing's stock currently sells for $26 a share. The stock just paid a dividend of...
Woidtke Manufacturing's stock currently sells for $26 a share. The stock just paid a dividend of $1.50 a share (i.e., D0 = $1.50), and the dividend is expected to grow forever at a constant rate of 9% a year. What is the estimated required rate of return on Woidtke's stock? Round the answer to three decimal places Thanks!
The market price of a share of preferred stock is $23.71 and the dividend is $2.40....
The market price of a share of preferred stock is $23.71 and the dividend is $2.40. What discount rate did the market use to value the stock? Suppose the risk-free rate is 1.43% and an analyst assumes a market risk premium of 7.51%. Firm A just paid a dividend of $1.49 per share. The analyst estimates the β of Firm A to be 1.22 and estimates the dividend growth rate to be 4.61% forever. Firm A has 286.00 million shares...
Woidtke Manufacturing's stock currently sells for $38 a share. The stock just paid a dividend of...
Woidtke Manufacturing's stock currently sells for $38 a share. The stock just paid a dividend of $1.25 a share(D0=1.25), and the dividend is expected to grow forever at a constant rate of 7% a year. What stock price is expected 1 year from now?
2. The common stock ABC Co. is trading at $40 per share. In the past the company has paid a constant dividend of $ 6 per share. However, the company has just announced new investments that the market did not know about. The market expects that with these new investments, the dividends should grow at 4% per year forever. Assuming that the investors required rate of rett (discount rate) remain the same, what will be the price of the stock...
please answer both and show work!
Robotic Atlanta Inc. just paid a dividend of $4.00 per share (that is, DO 4.00). The dividends of Robotic Atlanta are expected to grow at a rate of 20 percent next year (that is, g1 .20) and at a rate of 10 percent the following year (that is, g2 = .10). Thereafter (i.., from year 3 to infinity) the growth rate in dividends is expected to be 5 percent per year. Assuming the required...
30. The stock of Cabbor, Incorporated is trading at $70.00 per share. The company just paid a dividend of $5.00 per share that is, Do = 5.00). The growth rate in dividends is projected to be 6 percent per year forever. What is Cabbor's cost of equity capital (that 15, compute the required rate of return on the stock)?
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