Equity cost of capital=(D1/Current price)+Growth rate
0.15=(2.9/25.75)+Growth rate
Growth rate=0.15-(2.9/25.75)
=3.74%(Approx).
The Sisyphean Company's common stock is currently trading for $25.75 per share. The stock is expected to pay a $2.9 div...
The Sisyphean Company's common stock is currently trading for $26 por share. The stock is expected to pay a $2.1 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 12%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to O A. 784% OB. 5.88% OC. 3.92% OD. 196%
The Sisyphean Companys common stock is currently trading for $27.25 per share. The stock is expected to pay a $3 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 14% lf the dividend payout rate is expected to remain constant, then the expected growth rate in the company's earnings is closest to: OA. OB, 1.5% 4.49% C. OD, 598% 2.00%
Show work please The Sisyphean Company's common stock is currently trading tfr 526 per share. The stock is expected to pay a 52.1 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 12%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to O A. 7845 OB. 588% OC. 392% OD. 196%
The Sisyphean Company's common stock is currently trading for $28 per share. The stock is expected to pay a $2.4 dividend at the end of the year and the Sisyphean Company's equity cost of capital is 11%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Sisyphean Company's earnings is closest to: a. 2.43% b. 4.86% c. 1.22% d. 3.65%
Question 16 1 pts The Phelps Company's common stock is currently trading for $25.50 per share. The stock is expected to pay a $2.80 dividend at the end of the year and the Phelps Company's equity cost of capital is 10%. If the dividend payout rate is expected to remain constant, then the expected growth rate in the Phelps Company's earnings is closest to - - 0 -1.96% 0 -1.47% 0 -0.98% 0 -0.49%
6. Brewers’ Company's (BRW) common stock is currently trading for $25.00 per share. The stock is expected to pay a $2.50 dividend at the end of the year and BRW's equity cost of capital rE is 14%. (5pts) All handwritten no financial calculator. (a)If the dividend payout rate (of 75%) is expected to remain constant, then what is the expected growth rate in BRW's earnings? (12pts) (b)Suppose that BRW has a new investment opportunity that is expected to yield a...
Summerdahl Resort's common stock is currently trading at $37 a share. The stock is expected to pay a dividend of $1.50 a share at the end of the year (D1 = $1.50), and the dividend is expected to grow at a constant rate of 4% a year. What is the cost of common equity? Round your answer to two decimal places.
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