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
Miltmar corporation will pay a year-end dividends of $3, and dividends thereafter are expected to grow...
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...
Zebra Inc. will pay a dividend of $3 per share next year. Dividends are expected to grow at a rate of 8% until the end of year 3, and will grow at a constant rate of 3% thereafter. What is the current share price of the common stock if investors require a return of 12% on common stock?
Zebra Inc. will pay a dividend of $3 per share next year. Dividends are expected to grow at a rate of 8% until the end of year 3, and will grow at a constant rate of 3% thereafter. What is the current share price of the common stock if investors require a return of 12% on common stock?
Milt ar Corporation will pay a year-end dividend of S4 and dividends hereafter are expected to grow a e constant rate of 4% per year. The s ee ae s s and the expected return on he market portfolio is 12%. The stock has a beta of .75 a. Calculate the market capitalization rate. (Do not round intermediate calculations.) Market capitalization rate b. What is the intrinsic value of the stock? (Do not round intermediate calculations. Round your answer to...
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
AA Corporation’s stock has a beta of 8. The risk-free rate is 4.5% and the expected return on the market is 13.6%. What is the required rate of return on AA’s stock? The market and Stock J have the following probability distributions: Probability rM rJ 0.2 12% 16% 0.3 8 7 0.5 20 13 Calculate the expected rates of return for the market and Stock J. Suppose you manage a $6 million fund that consists of four stocks with...
The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 0.85, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price?
7. DPS CALCULATION: Warr Corporation just paid a dividend of $1.50 a share (that is, Do-$1.50). The dividend is expected to grow 7% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years? (Chapter 9) 3 8. CONSTANT GROWTH VALUATION: Thomas Brothers is expected to pay a S0.50 per share dividend at the end of the year (that is, Di S0.50). The...
A corporation has a beta of 2. The firm expects to pay a dividend of $3 next year. This dividend is expected to continue to grow indefinitely at a constant rate of 3% per year. The risk free rate is 5%. The market portfolio has an expected return of 14%. a) Calculate the required return on the corporation's shares. b) Calculate the corporation's share price today.
A stock is expected to pay a dividend of $1.00 each year for the next 3 years, after that the dividend is expected to grow at a constant rate of 7% per year forever. The stock s required rate of return is 11%. What is intrinsic value of the stock today Assume that the risk-free rate is 2% and the required return of the market is 8%. What is the required return of a stock with a beta of 1.25?...