Given the following information calculate the price of the stock. The first dividend of $2.50 is expected to be paid in 5 years time. Dividends are then expected to gow by 12% p.a. for the next 3 years. After this initial growth stage, it is assumed that dividends will grow by 4% p.a. into the foreseeable future. The required rate of return is 12% p.a.
$15.69 |
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$22.05 |
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$24.12 |
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$41.43 |
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Cannot be determined, insuffiecient information. |
Given the following information calculate the price of the stock. The first dividend of $2.50 is...
: Common Share It pays annual dividends and a $4 dividend was paid yesterday. As per the market consensus, the company’s dividend is expected to decrease by 10% per annum in the first two years. Then its dividend will grow by 25% for next three years. After that, the dividend growth rate will become 5% p.a. constant till foreseeable future. Peters required rate of return on this investment is 20% per annum
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A company has just paid its first dividend of $3.30. Next year's dividend is forecast to grow by 7 percent, followed by another 7 per cent growth in year two. From year three onwards dividends are expected to grow by 2.5 percent per annum, indefinitely. Investors require a rate of return of 12 percent p.a. for investments of this type. The current price of the share is (round to nearest cent) Select one: a. $38.66 b. $35.65 c. $22.26 d....
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Fowler and Woods Enterprises is a publicly traded company that just paid a $2.00 per share dividend. The company is expected to increase its dividend by 25% per year for the next two years. After the second year, the dividend growth rate will be 5% per year for the next two years. After the 4th year, dividends are expected to grow at a constant rate of 3% into the foreseeable future. An analyst estimates that investors in the firm will...
Fowler and Woods Enterprises is a publicly traded company that just paid a $2.00 per share dividend. The company is expected to increase its dividend by 20% per year for the next two years. After the second year, the dividend growth rate will be 5% per year for the next two years. After the 4th year, dividends are expected to grow at a constant rate of 3% into the foreseeable future. An analyst estimates that investors in the firm will require a 12% annual...
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