Question

Hello, Please solve these problems with details that i can learn, 1. Hackworth Company's common stock...

Hello, Please solve these problems with details that i can learn,

1. Hackworth Company's common stock is expected to pay a $4.10 dividend in the coming year. If investors require a 13% return and the growth rate in dividends is expected to be 8%, what should the market price of the stock be? Round to two decimal places.

Thank you,

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Hello, Please solve these problems with details that i can learn, 1. Hackworth Company's common stock...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The Western State Company's common stock is expected to pay a $2.56 dividend in the coming...

    The Western State Company's common stock is expected to pay a $2.56 dividend in the coming year. If investors require a 14% return and the growth rate in dividends is expected to be 5.4%, what will the market price of the stock be?

  • Hello, Please Solve the following problems with details: 1. Analysts predict that over the next year,...

    Hello, Please Solve the following problems with details: 1. Analysts predict that over the next year, Thete, Inc.’s common stock has a 30% chance of returning 25%, a 40% chance of returning 16%, and a 30% chance of returning 6%. What is the expected rate of return on Thete, Inc.’s common stock? Submit your answer as a percentage and round to two decimal places. Thank you,

  • a. The common stock of Russel, Corp. is currently selling at $50 and investors require a...

    a. The common stock of Russel, Corp. is currently selling at $50 and investors require a rate of return of 15%. Russel is expected to pay a dividend of $2. At what rate the market would expect Russel's dividends to growth? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Growth Rate = ? b. What will be the price of Russel's common shares if analysts revised its dividend growth rate down to 5%?(Round your answer to...

  • Please solve the problem with details that I learn. Finkle-McGraw Corp. just paid a dividend today...

    Please solve the problem with details that I learn. Finkle-McGraw Corp. just paid a dividend today of $2.60 per share. The dividend is expected to grow at a constant rate of 4.6% per year. If Finkle-McGraw Corp. stock is selling for $72.00 per share, what is the stockholders' expected rate of return? Submit your answer as a percentage and round to two decimal places. Thank you,

  • 1. Polomi's common stock just paid a dividend of $1.31 per share. And the dividend is...

    1. Polomi's common stock just paid a dividend of $1.31 per share. And the dividend is expected to grow at a rate of 6.00% every year. Investors require a rate of return of 12.80% on Polomi's stock. a. Calculate the intrinsic value of Polomi's stock? (Round your answer to 2 decimal places.) Intrinsic value            $ b. What should be the price of Polomi's stock 1 year from now if market expect its current market price reflects its intrinsic value? (Round...

  • Bookmatch 8-14 (book/static) Question Help (Measuring growth) Given that a firm's return on equity is 18...

    Bookmatch 8-14 (book/static) Question Help (Measuring growth) Given that a firm's return on equity is 18 percent and management plans to retain 40 percent of earnings for investment purposes, what will be the firm's growth rate? The firm's growth rate will be 96. (Round to two decimal places.) (Common stock valuation) Sanford common stock is expected to pay $1.85 in dividends next year, and the market price is projected to be $51.35 per share by year-end. If investors require a...

  • Michael Scott's Paper Company common stock dividend is expected to grow at a long-run rate of 3% per year. The dividend...

    Michael Scott's Paper Company common stock dividend is expected to grow at a long-run rate of 3% per year. The dividend recently paid was $1.50 per share. Investors require a 13% return from MSPC's common stock. What is your estimate of MSPC's common stock price? If analysts suddenly change their estimate of MSPC's dividends growth rate to 6% instead of 3% what will happen toMSPC's stock price? The dividend recently paid was $1.50 per share. Investors require a 13% return...

  • The stock price of Alps Co. is $53.50. Investors require a return of 13 percent on...

    The stock price of Alps Co. is $53.50. Investors require a return of 13 percent on similar stocks. ints If the company plans to pay a dividend of $3.40 next year, what growth rate is expected for the company's stock price? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Growth rate % eBook Print

  • Return on Common Stock You buy a share of The Ludwig Corporation stock for $19.20. You...

    Return on Common Stock You buy a share of The Ludwig Corporation stock for $19.20. You expect it to pay dividends of $1.06, $1.17, and $1.2914 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $29.08 at the end of 3 years. Calculate the growth rate in dividends. Round your answer to two decimal places. % Calculate the expected dividend yield. Round your answer to two decimal places. % Assuming that the...

  • Return on Common Stock You buy a share of The Ludwig Corporation stock for $23.60. You...

    Return on Common Stock You buy a share of The Ludwig Corporation stock for $23.60. You expect it to pay dividends of $1.09, $1.1543, and $1.2224 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $28.03 at the end of 3 years. Calculate the growth rate in dividends. Round your answer to two decimal places.   % Calculate the expected dividend yield. Round your answer to two decimal places.   % Assuming that the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT