Great American Coal company just announced that it will pay an annual dividend of $3.60 a share one year from now. Two y...
Great American Coal company just announced that it will pay an annual dividend of $3.60 a share one year from now. Two years from now, the company expects to pay a $28 a share liquidating dividend. After that, the company will cease operations. What is the current value per share at a discount rate of 12.5%? Is it A.$25.32, B.$24.28,C.$29.88, D.$26.75?
Homework Answers
Current value of share = Present value of future cash inflows
Current value of share = 3.6 / (1 + 0.125)1 + 28 / (1 + 0.125)2
Current value of share = 3.2 + 22.123457
Current value of share = $25.32
Add Answer to:
Great American Coal company just announced that it will pay an annual dividend of $3.60 a share one year from now. Two y...
JLT Corp.'s management just announced that next year's annual dividend will be $3.60. This represents a...
JLT Corp.'s management just announced that next year's annual dividend will be $3.60. This represents a 3.0% decline from its most recent dividend. Management also announced that going forward it expects to continue to reduce the stock's future payouts by 3.0%. Your required return on the stock is 14.5%. What price would you pay for a share of JLT stock? $30.37 • $19.95 $24.83 $31.30 $20.52
General Importers announced that it will pay a dividend of $3.75 per share one year from...
General Importers announced that it will pay a dividend of $3.75 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 6 years. Then, 8 years from today, the company will begin paying an annual dividend of $1.85 forever. The required return is 11.6 percent. What is the price of the stock today?
General Importers announced that it will pay a dividend of $3.95 per share one year from...
General Importers announced that it will pay a dividend of $3.95 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 7 years. Then, 9 years from today, the company will begin paying an annual dividend of $2.05 forever. The required return is 12 percent. What is the price of the stock today?
General Importers announced that it will pay a dividend of $4.05 per share one year from...
General Importers announced that it will pay a dividend of $4.05 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 5 years. Then, 7 years from today, the company will begin paying an annual dividend of $2.15 forever. The required return is 12.2 percent. What is the price of the stock today? $12.44 $13.52 $11.48 $17.62 $3.61
JJ Industries will pay a regular dividend of $1.20 per share for each of the next...
JJ Industries will pay a regular dividend of $1.20 per share for each of the next four years. At the end of the four years, the company will also pay out a liquidating dividend of $42 per share, and the company will cease operations. If the discount rate is 8 percent, what is the current value of the company’s stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Question 1 1 pts DEF Industries will pay a regular dividend of $3.05 per share for...
Question 1 1 pts DEF Industries will pay a regular dividend of $3.05 per share for each of the next 4 years. At the end of the 4 years, the company will also pay out a $37 per share liquidating dividend, and the company will cease operations. If the discount rate is 6.93 percent, what is the current value of the company's stock? Answer to two decimals. Carry intermediate calculations to four decimals.
Slow Growth Company just paid an annual dividend of $1.65 a share. The firm expects to...
Slow Growth Company just paid an annual dividend of $1.65 a share. The firm expects to pay dividends forever and to increase the dividend by 3 percent annually. What is the expected value of this stock five years from now if the discount rate is 14%? Is it A$17.23, B.$19.88, C.$18.25, D.$17.91?
Drake’s Market just announced its next annual dividend will be $1.50 a share. It expects the...
Drake’s Market just announced its next annual dividend will be $1.50 a share. It expects the dividends to grow by 1.8 percent annually forever. How much will one share of this stock be worth five years from now if the required return is 15.5 percent? Group of answer choices A. $11.97 B. $11.76 C. $14.14 D. $12.19 E. $13.79
Symon's Suppers Co. has announced that it will pay a dividend of $4.45 per share one...
Symon's Suppers Co. has announced that it will pay a dividend of $4.45 per share one year from today. Additionally, the company expects to increase its dividend by 3.9 percent annually. The required return on the company's stock is 11.7 percent. What is the current share price?
Symon's Suppers Co. has announced that it will pay a dividend of $4.19 per share one...
Symon's Suppers Co. has announced that it will pay a dividend of $4.19 per share one year from today. Additionally, the company expects to increase its dividend by 4.2 percent annually. The required return on the company's stock is 10.4 percent. What is the current share price?
JLT Corp.'s management just announced that next year's annual dividend will be $3.60. This represents a 3.0% decline from its most recent dividend. Management also announced that going forward it expects to continue to reduce the stock's future payouts by 3.0%. Your required return on the stock is 14.5%. What price would you pay for a share of JLT stock? $30.37 • $19.95 $24.83 $31.30 $20.52
General Importers announced that it will pay a dividend of $3.75 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 6 years. Then, 8 years from today, the company will begin paying an annual dividend of $1.85 forever. The required return is 11.6 percent. What is the price of the stock today?
General Importers announced that it will pay a dividend of $3.95 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 7 years. Then, 9 years from today, the company will begin paying an annual dividend of $2.05 forever. The required return is 12 percent. What is the price of the stock today?
Question 1 1 pts DEF Industries will pay a regular dividend of $3.05 per share for each of the next 4 years. At the end of the 4 years, the company will also pay out a $37 per share liquidating dividend, and the company will cease operations. If the discount rate is 6.93 percent, what is the current value of the company's stock? Answer to two decimals. Carry intermediate calculations to four decimals.
Most questions answered within 3 hours.
-
She estimates the following model as Rent = β0 + β1 Bedroom + β2
Bath +...
asked 2 minutes from now -
how can you efficiently determine the number of atoms
in a sample of an element?
asked 13 seconds ago -
a car starts from rest at a stop sign. It accelerates
at 4.4m/s² for 7.5s, coasts...
asked 21 minutes ago -
Calcium dihydrogen phosphate, Ca(H2PO4)2, and sodium hydrogen
carbonate, NaHCO3, are ingredients of baking powder that react...
asked 5 minutes ago -
can you identify some rules of how R is calculated for a circuit
in series? For...
asked 13 minutes ago -
Design and implement your own linked list class to hold a sorted
list of integers in...
asked 21 minutes ago -
Write the balanced chemical equation for the reaction between
iodate and bisulfite. Does the order with...
asked 15 minutes ago -
Swissie Triangular Arbitrage. The following exchange rates are
available to you. (You can buy or sell...
asked 19 minutes ago -
1. Sketch the expected Mass Spectrum of Pentane (C5H12)
2. Draw the most stable Newman projection...
asked 25 minutes ago -
There are changes in the dynamics of a relationship of a family
when family takes on...
asked 27 minutes ago -
Prove that the following is a valid cumulative distribution
function
F(x) = x/(1+x) for a>=0
0...
asked 27 minutes ago -
Caculate the PH THANK YOU!
[OH−] = 1.9×10−7 M
[OH−] = 1.6×10−8 M
[OH−] = 7.2×10−11...
asked 38 minutes ago