ZuoTi.Pro
Question

Consider a company which is expected to pay a dividend next year of 2.3 per share....

Consider a company which is expected to pay a dividend next year of 2.3 per share. The expected ROE is 0.132. The required rate of return is 0.105. If the firm has a dividend ratio of 0.49, its intrinsic value using the DDM should be: Group of answer choices a. 57.59 b. 51.70 c. 55.67 d. 61.04 e. 49.56 can you please walk me through the steps thank you.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Please rate Thumbs up

0 0
Add a comment
Know the answer?
Add Answer to:
Consider a company which is expected to pay a dividend next year of 2.3 per share....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • Doolittle Co.just paid a dividend of $4.2 this year (to). Doolittle is expected to pay 0.73...

    Doolittle Co.just paid a dividend of $4.2 this year (to). Doolittle is expected to pay 0.73 of its earnings as dividends and will have an ROE of 0.1 until the fourth year (ta). After that, its dividend payout ratio will increase to 0.79 and the ROE is expected to decrease to 0.04. Applying the cost of equity of 0.13 and the multistage growth model, compute the intrinsic price of Doolittle. Flanders, Inc., has expected earnings of $7.5 per share for...

  • Tresnan Brothers is expected to pay a $2.3 per share dividend at the end of the...

    Tresnan Brothers is expected to pay a $2.3 per share dividend at the end of the year (i.e., D1 = $2.3). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 15%. What is the stock's current value per share? Round your answer to two decimal places.

  • Dexter International is expected to pay a dividend next year of $2.10 per share. Dexter has...

    Dexter International is expected to pay a dividend next year of $2.10 per share. Dexter has a beta of 1.00 and the market rate of return is 12% and the risk free rate is 3%. What is the dividend yield if an investor purchases the stock at $41.68 a share? Group of answer choices 5.0% 6.0% 9.0% 12.0%

  • A firm is expected to pay a dividend of $6 in the upcoming year. Dividends are...

    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

  • QUESTION 11 Quixy Corp is expected to pay a dividend next year of $5.3 per share....

    QUESTION 11 Quixy Corp is expected to pay a dividend next year of $5.3 per share. The dividend is expected to grow at a constant rate of 4% per year if Quixy Corp stock is selling for $59.37 per share, what is the stockholders' expected rate return? Submit your answer as a percentage and round to two decimal places (Ex 0.00%) QUESTION 12 Elicon Inc. preferred stock pays a constant annual dividend of $10.46 per share. If investors' required rate...

  • Mattel, Inc. is expected to pay a $1.60 dividend per share annually. Estimate its intrinsic value...

    Mattel, Inc. is expected to pay a $1.60 dividend per share annually. Estimate its intrinsic value per common share using the dividend discount model (DDM) under each of the following separate assumptions. (Assume that Mattel’s cost of equity capital is 8.0%.) Required a. The $1.60 dividend per share occurs at the end of each of the next three years, after which there are no additional dividend payments. Round answer to two decimal places. b. The $1.60 dividend per share occurs...

  • 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?

  • Sarval Corp is expected to pay a dividend next year of $2.2 per share. The dividend...

    Sarval Corp is expected to pay a dividend next year of $2.2 per share. The dividend is expected to grow at a constant rate of 3% per year. If Sarval Corp stock is selling for $22.37 per share, what is the stockholders' expected rate of return?  Submit your answer as a percentage and round to two decimal places (Ex. 0.00%)

  • Sarval Corp is expected to pay a dividend next year of $4.79 per share. The dividend...

    Sarval Corp is expected to pay a dividend next year of $4.79 per share. The dividend is expected to grow at a constant rate of 4% per year. If Sarval Corp stock is selling for $41.65 per share, what is the stockholders' expected rate of return? Submit your answer as a percentage and round to two decimal places (Ex. 0.00%)

  • Quixy Corp. is expected to pay a dividend next year of $0.77 per share. The dividend...

    Quixy Corp. is expected to pay a dividend next year of $0.77 per share. The dividend is expected to grow at a constant rate of 3% per year. If Quixy Corp. stock is selling for $46.51 per share, what is the stockholders' expected rate of return? Submit your answer as a percentage and round to two decimal places (Ex. 0.00%).

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