Question

How much would you pay for a share of stock paying a dividend ​(cash payout ​C)...

How much would you pay for a share of stock paying a dividend ​(cash payout ​C) of ​$5 to be paid in one​ year, a known selling price in one year ​(​P) of ​$75​, and expected return ​(R) of similar assets of 4​%?

You would pay?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Kindly upvote:)

Add a comment
Know the answer?
Add Answer to:
How much would you pay for a share of stock paying a dividend ​(cash payout ​C)...
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
  • How much would you pay for a share of stock paying a dividend (cash payout C)...

    How much would you pay for a share of stock paying a dividend (cash payout C) of $4 to be paid in one year, a known selling price in one year (P) of $50, and expected return (R) of similar assets of 4%? You would pay $ (Round your response to the nearest penny) Consider the one-period valuation model for computing stock prices. Suppose you are considering buying Wal-Mart stock, which has a price of $75.06 and a dividend of...

  • How much would you be willing to pay for one share of BUS320 stock if the...

    How much would you be willing to pay for one share of BUS320 stock if the company will pay $5 annual dividend next year, the dividends increase by 5 percent annually, and you require a return of 15 percent? (Please Show All Work)

  • The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $2.25 per share,...

    The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $2.25 per share, and there are 50,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Assets Liabilities and Equity   Cash $450,000        Equity $1,650,000        Fixed assets 1,200,000      a. What price is Payout stock selling for today? (Round your answer to the nearest cent.)   Price    $         b. What price will it sell for tomorrow? Ignore taxes. (Round your answer to...

  • The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.80 per share,...

    The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $0.80 per share, and there are 22,000 shares of stock outstanding. The market-value balance sheet for Payout is shown below. Ignore taxes. Assets   Liabilities and Equity Cash    $200,000   Equity $1,210,000 Fixed assets $1,010,000 a. What price is Payout stock selling for today? (Round your answer to 2 decimal places.) b. What price will it sell for tomorrow? (Round your answer to 2 decimal places.)

  • 8. How much are you willing to pay for one share of Jumbo Trout stock if...

    8. How much are you willing to pay for one share of Jumbo Trout stock if the company is expected to pay an annual dividend of $0.45 at the end of next year, the dividends increase by 3.5 percent annually indefinitely and you require a 10 percent rate of return? $6.92 Please Show All Work

  • How much are you willing to pay for one share of APOL stock if the company...

    How much are you willing to pay for one share of APOL stock if the company just paid an annual dividend of $2.25, the dividends increase by 2 percent annually, and you require a return of 15 percent?

  • How much are you willing to pay for one share of Jumbo Trout stock if the...

    How much are you willing to pay for one share of Jumbo Trout stock if the company just paid a $0.70 annual dividend, the dividends increase by 2.5 percent annually, and you require a 10 percent rate of return?

  • Suppose you are thinking of purchasing the stock of TTYL Widget, Inc.  You expect it to pay...

    Suppose you are thinking of purchasing the stock of TTYL Widget, Inc.  You expect it to pay a $3.00 dividend in one year.  You believe you can sell the stock for $21.00 at that time.  You require a return of 15% on investments of this risk.  What is the maximum you would be willing to pay? Suppose you are thinking of purchasing the stock of TTYL Widget, Inc.  In addition to the dividend and price from year one you expect it to pay a $3.30...

  • ​DFB, Inc. expects earnings next year of $ 4.45 per​ share, and it plans to pay a $ 2.24 dividend to shareholders​ (assu...

    ​DFB, Inc. expects earnings next year of $ 4.45 per​ share, and it plans to pay a $ 2.24 dividend to shareholders​ (assume that is one year from​ now). DFB will retain $ 2.21 per share of its earnings to reinvest in new projects that have an expected return of 15.2 % per year. Suppose DFB will maintain the same dividend payout​ rate, retention​ rate, and return on new investments in the future and will not change its number of...

  • Cabot Vineyards has been paying a regular cash dividend of $4.80 per share each year for...

    Cabot Vineyards has been paying a regular cash dividend of $4.80 per share each year for over a decade. The company is paying out all its earnings as dividends and is not expected to grow. There are 118,000 shares outstanding selling for $80 per share. The company has sufficient cash on hand to pay the next annual dividend. Suppose that, starting in year 1, Cabot decides to cut its cash dividend to zero and announces that it will repurchase shares...

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