Brickhouse is expected to pay a dividend of $3.35 and $2.54 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 4.3 percent. What is the stock price today if the required return is 11.7 percent?
Value after year 2=(D2*Growth Rate)/(Required rate-Growth Rate)
=(2.54*1.043)/(0.117-0.043)
=$35.80027027
Hence current price=Future dividends and value*Present value of discounting factor(rate%,time period)
=3.35/1.117+2.54/1.117^2+35.80027027/1.117^2
=$33.73(Approx).
Brickhouse is expected to pay a dividend of $3.35 and $2.54 over the next two years,...
Brickhouse is expected to pay a dividend of $3.65 and $2.66 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.3 percent. What is the stock price today if the required return is 12.3 percent? $34.63 $24.20 $29.56 $27.45 $32.13
Brickhouse is expected to pay a dividend of $3.45 and $2.58 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 4.1 percent. What is the stock price today if the required return is 11.9 percent? $37.46 $30.57 $35.07 $32.63 $27.49
9. Knightmare, Inc., will pay a dividend of $6.15, $9.05, and $12.25 per share for each of the next three years, respectively. The company will then close its doors. Investors require a return of 11.7 percent on the company's stock. What is the current stock price? 10. Brickhouse is expected to pay a dividend of $2.90 and $2.36 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.4 percent. What is...
Your company is expected to pay a dividend of $2.75 and $2.30 over the next two years, respectively. After that, your company is expected to increase its annual dividend at 3.1 percent. What is the stock price today if the required return is 10.5 percent? $30.60 $34.96 $26.23 $32.80 $28.72
New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $5.05 per share exactly 10 years from today. After that, the dividends are expected to grow at 3.8 percent forever. If the required return is 11.6 percent, what is the price of the stock today? Multiple Choice $21.61 $64.74 $46.28 $28.13 42411 20 of 20 <Prev Next Help Save & Exit Submit Brickhouse is expected to pay a dividend of $2.55 and $2.22...
Ghost Riders Co. has an EPS of $1.68 that is expected to grow at 8.8 percent per year. If the PE ratio is 19.45 times, what is the projected stock price in 7 years? $61.56 $64.16 $58.97 $54.20 $51.12 Brickhouse is expected to pay a dividend of $2.45 and $2.18 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 2.5 percent. What is the stock price today if the required return...
5. Red Sun Rising just paid a dividend of $2.22 per share. The company said that it will increase the dividend by 20 percent and 15 over the next two years, respectively. After that, the company is expected to increase its annual dividend at 3.8 percent. If the required return is 10.8 percent, what is the stock price today? 7.Fowler is expected to pay a dividend of $1.65 one year from today and $1.80 two years from today. The company...
Mack Industries is not expected to pay a dividend over the next four years. At the end of the fifth year, the company anticipates that it will pay a dividend of $1.00 per share. This dividend is then expected to grow at a constant rate of 5% per year thereafter. The required rate of return on the company's stock is 1 1%. Compute the current price of the stock today 4)
Tesla is expected d to pay no dividends over the next 4 years pay a dividend of $5 at the end of year 5, and then grow the dividends by 6% each year afterwards. the required rate of return is 8% what should be the stock price today according to the two stage growth model?
Non- constant growth A stock is expected to pay a dividend of $8 next year and this will increase by $2 for each of the following 3 years. after that, the company is expected to pay no dividends to its shareholders. if the required rate of return is 11% on this stock, what is the current stock price?