SlowGrowth Corporation currently pays a dividend of $2.3 per year. Stock analysts expect the company would...
SlowGrowth Corporation currently pays a dividend of $2.3 per year. Stock analysts expect the company would continue to pay the current dividend amount for three years and, after the three years, increase dividend by 2% per year in perpetuity. According to the stock analysts forecast of future dividends, what should be the stock price today if the discount rate is 4%?
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SlowGrowth Corporation currently pays a dividend of $2.3 per
year. Stock analysts expect the company would...
Microsoft just paid an annual dividend of $2. Analysts expect that the company will increase dividends at a rate of 13%...
Microsoft just paid an annual dividend of $2. Analysts expect that the company will increase dividends at a rate of 13% per year during the next three years, and then increase at a constant rate of 4% forever. If the discount rate of Microsoft is 15%, what is the current price of the stock?
The XYZ Company currently (that is, as of year 0) pays a common stock dividend of...
The XYZ Company currently (that is, as of year 0) pays a common stock dividend of $1.5 per share. Dividend are expected to grow at a rate of 11% per year for the next 4 years and then continue growing thereafter at a rate of 5% per year. What is the current value of a share of Seneca common stock to an investor who require a 14% rate of return? Hint: The dividend growth rate g(t) changes during the history....
The company AT&T’s current stock price is $33.79, and yesterday it paid a dividend of $1.85...
The company AT&T’s current stock price is $33.79, and yesterday it paid a dividend of $1.85 per share. Analysts expect the dividend to grow at an 8% rate for the next three years (i.e. the next three dividends) due to the continued market growth of smartphones and increased usage of data services. Beginning with the dividend in year 4, analysts expect AT&T’s dividend growth rate to level off to 3% in perpetuity as these two revenue streams mature and data...
$0.69 one year from now. Analysts expect this dividend to grow at 11.2% per year thereafter...
$0.69 one year from now. Analysts expect this dividend to grow at 11.2% per year thereafter until the 4th Assume Gillette Corporation will pay an annual dividend of year Thereafter, growth will level off at 2.2% per year According to the dividend-discount model what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.1%? The value of Gillette's stock is Round to the nearest cent.)
Estimating Stock Value Using Dividend Discount Model with Constant Perpetuity Kellogg pays $2.25 in annual per...
Estimating Stock Value Using Dividend Discount Model with Constant Perpetuity Kellogg pays $2.25 in annual per share dividends to its common stockholders, and its recent stock price was $82.50. Assume that Kellogg’s cost of equity capital is 5.0%. a. Estimate Kellogg’s stock price using the dividend discount model with constant perpetuity. $Answer b. Compare the estimate obtained in part a with Kellogg’s $82.50 price. What does the difference between these amounts imply about Kellogg’s future growth? The estimated price is...
Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expect...
Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expect this dividend to grow at 12.3% per year thereafter until the 55th year. Thereafter, growth will level off at 2.2% per year. According to thedividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.2%?
Assume Gillette Corporation will pay an annual dividend of $0.67 one year from now. Analysts expect...
Assume Gillette Corporation will pay an annual dividend of $0.67 one year from now. Analysts expect this dividend to grow at 12.8% per year thereafter until the 6th year. Thereafter, growth will level off at 1.8% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 7.8%? The value of Gillette's stock is $ . (Round to the nearest cent.)
Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect...
Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to grow at 11.8% per year thereafter until the 6th year. Thereafter, growth will level off at 23% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 7.7%? The value of Gillette's stock is $ (Round to the nearest cent.)
A company just paid a dividend of $1.40 per share. The consensus forecast of financial analysts...
A company just paid a dividend of $1.40 per share. The consensus forecast of financial analysts is a dividend of $1.70 per share next year, $2.30 per share two years from now, and $2.80 per share in three years. You expect the price of the stock to be $28 in two years. If the required rate of return is 8% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)
NoGrowth Corporation currently pays a dividend of $0.47 per quarter, and it will continue to pay...
NoGrowth Corporation currently pays a dividend of $0.47 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 15.1%? The stock price is $(Round to the nearest cent.)
$0.69 one year from now. Analysts expect this dividend to grow at 11.2% per year thereafter until the 4th Assume Gillette Corporation will pay an annual dividend of year Thereafter, growth will level off at 2.2% per year According to the dividend-discount model what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.1%? The value of Gillette's stock is Round to the nearest cent.)
Assume Gillette Corporation will pay an annual dividend of $0.67 one year from now. Analysts expect this dividend to grow at 12.8% per year thereafter until the 6th year. Thereafter, growth will level off at 1.8% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 7.8%? The value of Gillette's stock is $ . (Round to the nearest cent.)
Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to grow at 11.8% per year thereafter until the 6th year. Thereafter, growth will level off at 23% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 7.7%? The value of Gillette's stock is $ (Round to the nearest cent.)
NoGrowth Corporation currently pays a dividend of $0.47 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 15.1%? The stock price is $(Round to the nearest cent.)
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