A stock with a required return of 19.6% has just announced that it will make its first dividend payment of $2 per share in four years. Afterward they plan to increase the dividend payment by 8% per year. What should be the current price of this stock?
A. $8.43
B. $17.24
C. $9.10
D. $10.08
A stock with a required return of 19.6% has just announced that it will make its...
. Kicssling Corp. pays a constant S9 dividend on its stock. The company will maintain this dividend for the next eight years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share price? 1. Metallica Bearings, Inc. is a young start-up company. No dividends will be paid on the stock over the next nine years, because the first needs to plow back its carnings to fuel growth. The...
Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $9.00 per share and has announced that it will increase the dividend by $7.00 per share for each of the next four years, and then never pay another dividend. Required: If you require a return of 12 percent on the company's stock, how much will you pay for a share today? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g.,...
Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $11.00 per share and has announced that it will increase the dividend by $9.00 per share for each of the next four years, and then never pay another dividend. If you require a return of 16 percent on the company's stock, how much will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current...
Maloney, Inc., has an odd dividend policy. The company has just paid a dividend of $3.50 per share and has announced that it will increase the dividend by $4.50 per share for each of the next five years, and then never pay another dividend. If you require a return of 11 percent on the company's stock, how much will you pay for a share today? 3.50 Current dividend Dividend growth Required return $ 4.50 11% Complete the following analysis. Do...
TDAC has just paid $3 per share. The required rate of return for the stock is 9%. It had difficult few years and so the Board of Directors decided to cut the dividend by 3% every year, starting next dividend to be paid. What is the price of the stock at the scenario? There are some optimist investors too. They think the decrease will be for the next 2 years only and after that the dividend will again grow at...
Angelina's made two announcements concerning its common stock today. First, the company announced that its next annual dividend, which will be paid a year from today, has been set at $2.16 a share. Secondly, the company announced that all future dividends will increase by 4% annually. Angelina's stock has a beta of 1.15, the risk free rate is 1.95%, and the expected return on the market is 8.95%. What should the current price of Angelina's stock be? $21.60 $22.46 $26.21...
Dunder-Mifflin/Saber has announced that it will begin paying dividends with the first dividend of $3.50 per share to be paid in three years and grow at 6% per year afterward. If you require a return of 18%, what is the most you would pay for the stock today?
Maloney, Inc., has an odd dividend policy. The company has just paid a dividend of $3.50 per share and has announced that it will increase the dividend by $4.50 per share for each of the next five years, and then never pay another dividend. If you require a return of 11 percent on the company's stock, how much will you pay for a share today? 3.50 Current dividend Dividend growth Required return $ 4.50 11% Complete the following analysis. Do...
E-Eyes.com Bank just issued some new preferred stock. The issue will pay a $10 annual dividend in perpetuity, beginning 4 years from now. If the market requires a 12 percent return on this investment, how much does a share of preferred stock cost today? Far Side Corporation is expected to pay the following dividends over the next four years: $14, $11, $8, and $5. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If...
TUV Inc., just paid a dividend of $4.5 per share on its stock. The growth rate in dividends is expected to be a constant 6 percent per year indefinitely. Investors require an 20 percent return on the stock for the first three years, then a 12 percent return for the next three years, and then an 9 percent return thereafter. What is the current share price? Answer to two decimals, carry intermediate calcs. to four decimals.