Sam Inc’s last annual dividend (D0) was $2.40 per share, and the firm’s required return is...
Sam Inc’s last annual dividend (D0) was $2.40 per share, and the firm’s required return is 14%. Dividends are expected to grow at a constant 5% annually, what should be the market value of Sam’s share?
Homework Answers
| Expected dividend in next year= $2.40+5% | |||
| =$2.52 | |||
| Stock price = expected dividend / required rate - growth rate | |||
| =$2.52/(0.14-0.05) | |||
| =$2.52/0.09 | |||
| =$28 | |||
Add Answer to:
Sam Inc’s last annual dividend (D0) was $2.40 per share, and the
firm’s required return is...
Common Stock Value- Variable Growth. Lawerence industries most recent annual dividend was $1.92 per share (D0=...
Common Stock Value- Variable Growth. Lawerence industries most recent annual dividend was $1.92 per share (D0= $1.92) and the firm's required return is 12%. Find the market value of Lawerence's shares when dividends are expected to grow at 30% annually for 3 years, followed by a 5% constant annual growth rate in years 4 to infinity.
Common stock value Variable growth Lawrence Industries' most recent annual dividend was $1.54 per share (D0=$...
Common stock value Variable growth Lawrence Industries' most recent annual dividend was $1.54 per share (D0=$ 1.54), and the firm's required return is 10%. Find the market value of Lawrence's shares when dividends are expected to grow at 20% annually for 3 years, followed by a 7% constant annual growth rate in years 4 to infinity. The market value of Lawrence's shares is $
Lawrence Industries' most recent annual dividend was $1.68 per share (d=$1.68) and the firm's required return...
Lawrence Industries' most recent annual dividend was $1.68 per share (d=$1.68) and the firm's required return is 11%. Find the market value of Lawrences' shares when dividends are expected to grow at 10% annually for 3 years, followed by a 7% constant annual growth rate in years 4 to infinity. a. The market value of Lawrence's shares is
Lawrence Industries' most recent annual dividend was $1.09 per share (D0equals=$1.09), and the firm's required return...
Lawrence Industries' most recent annual dividend was $1.09 per share (D0equals=$1.09), and the firm's required return is 13%. Find the market value of Lawrence's shares when dividends are expected to grow at 10% annually for 3 years, followed by a 66% constant annual growth rate in years 4 to infinity. The market value of Lawrence's shares is....
Lawrence Industries most recent annual dividend was $1.80 per share and the firm's required return is...
Lawrence Industries most recent annual dividend was $1.80 per share and the firm's required return is 11%. If dividends are expected to grow by 5% annually for 3 years and follows by a 2% constant growth rate in years 4 to infinity. What is the valuation of Lawrence Industries stock today?
Last year, Wilderness Adventures paid an annual dividend of $2.40 per share. The firm recently announced...
Last year, Wilderness Adventures paid an annual dividend of $2.40 per share. The firm recently announced that it will increase its dividend by a constant 6.0 percent annually. What is one share of this stock worth today at a required rate of 15.2 percent? Need help on [(2.40*1.06)/(.152-.09)]. where does the .09 come from?
El Taco Tote just paid a dividend of D0 = $1.75 per share, and that dividend...
El Taco Tote just paid a dividend of D0 = $1.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The company's beta is 1.50, the required return on the market is 9.50%, and the risk-free rate is 3.50%. What is the company's current stock price?
The market price of a share of preferred stock is $23.71 and the dividend is $2.40....
The market price of a share of preferred stock is $23.71 and the dividend is $2.40. What discount rate did the market use to value the stock? Suppose the risk-free rate is 1.43% and an analyst assumes a market risk premium of 7.51%. Firm A just paid a dividend of $1.49 per share. The analyst estimates the β of Firm A to be 1.22 and estimates the dividend growth rate to be 4.61% forever. Firm A has 286.00 million shares...
Common stock value—Variable growth Lawrence Industries' most recent annual dividend was $1.98 per share (Do =...
Common stock value—Variable growth Lawrence Industries' most recent annual dividend was $1.98 per share (Do = $1.98), and the firm's required return is 14%. Find the market value of Lawrence's shares when dividends are expected to grow at 15% annually for 3 years, followed by a 3% constant annual growth rate in years 4 to infinity. The market value of Lawrence's shares is $ . (Round to the nearest cent.)
National Advertising just paid a dividend of D0 = $0.75 per share, and that dividend is...
National Advertising just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 0.8, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price? Select the correct answer. a. $29.21 b. $28.53 c. $28.87 d. $29.55 e. $28.19
Common stock value—Variable growth Lawrence Industries' most recent annual dividend was $1.98 per share (Do = $1.98), and the firm's required return is 14%. Find the market value of Lawrence's shares when dividends are expected to grow at 15% annually for 3 years, followed by a 3% constant annual growth rate in years 4 to infinity. The market value of Lawrence's shares is $ . (Round to the nearest cent.)
Most questions answered within 3 hours.
-
For the first ten questions, you'll use the following data. It
will be repeated for your...
asked 1 minute from now -
The nanograms per microliter of a drug still presents n a
patient's bloodstream 1 hour after...
asked 4 minutes ago -
The days required for
a business to receive inventory, sell the inventory, and collect
cash from...
asked 4 minutes ago -
1. A DEAE column chromatography of IgG enriched was used. What
if you prepared a column...
asked 11 minutes ago -
Description: Merge two or more text files
provided by the user into a new text file...
asked 32 minutes ago -
1) A 2.00 kg ball of is placed on a spring with spring constant
? =...
asked 33 minutes ago -
Calculate the force required to produce 15 N⋅m torque at an
angle of 30∘ from a...
asked 38 minutes ago -
1) Solid lead acetate is slowly added to 50.0 mL of a 0.0486 M
potassium hydroxide...
asked 34 minutes ago -
Self-awareness is one of the components of emotional
intelligence (EI).
True/False
asked 43 minutes ago -
Erosion costs. Fat Tire Bicycle Company currently sells 40,000
bicycles per year. The current bike is...
asked 48 minutes ago -
Homework #5 - Elevator Simulation - Doubly Linked List
The program needs to use a doubly...
asked 53 minutes ago -
Changes occur constantly in all aspects of life; the changing
perceptions of women you have explored...
asked 53 minutes ago