The current price of AA stock is $60. Dividends are expected to grow at 5% indefinitely and the most recent dividend (D0) was $3. What is the required rate of return on AA stock?
The current price of AA stock is $60. Dividends are expected to grow at 5% indefinitely...
Assume your firm's dividends per share are expected to grow indefinitely by 3% a year. Next year's dividend is $4.50 and the required rate of return (i.e. equity holder's opportunity cost of capital) is 8%. Assuming this is the best information available regarding the future of this firm, what would be the most economically rational value of the stock today (i.e. today's "price")? 56.25 150.00 90.00 92.70 45.00
Question 39
Carla Tire’s current dividend is $5.30. Dividends are expected
to grow by 20 percent for years 1 to 3 and 10 percent thereafter.
The required rate of return on the stock is 13 percent. What is
Carla’s current stock price? (Round intermediate
calculations to 4 decimal places, e.g. 7.1285 and final answer to 2
decimal places, e.g. 115.61.)
Stock price is
$
Question 34
Bridgeport Supplies Ltd. currently doesn’t pay any dividends but
is expected to start paying...
A stock paid dividend of $2 at the end of the current year. Dividends will grow at the rate of 5% indefinitely. The required rate of return of the investor is 12%. Calculate the price of the stock at the end of 2nd year. A. $30.00 B. $28.571 C. $33.00 D. $33.075
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on the stock, what is the current price? What will the price be in three years? In 15 years?
DMH Enterprise�s stock dividends are expected to grow at a rate of 25% for three years, after which dividends are expected to grow at a constant rate of 10% forever. The company recently paid a dividend of $2 and the required rate of return on the stock is 12%, what is the stock�s current price? $115.41 $128.54 $144.15 $160.54 You are charged with the valuation of Hurst Company�s stock. You have access to the following information: Hurst dividends are expected...
A stock is expected to pay a dividend of $8.25. These dividends are expected to grow at a constant rate of 4%. What is the stock price if the required rate of return on the stock is 8%? A. $82.50 B. $169.32 C. $206.25 D. $214.50
Riggs Inc. has seen non-constant dividend growth in recent years. Dividends are expected to grow at rates of 20%, 15% and 10% for the next three years respectively. After that, dividend is expected to remain constant at a rate of 5%. Riggins Riggs has a required rate of return of 10%. a. If the last paid dividend, D0, was $2.50, what would Riggins Riggs stock be worth today? b. What would the capital gains and dividend yield equal in the...
Churchill Downs stock is expected to grow at 1.4% indefinitely, and the last dividend was 5$. If the relevant risk return is 4.2%, what would you be willing to pay for the stock.
The earnings, dividends, and stock price of
Shelby Inc. are expected to grow at 5% per year in the future.
Shelby's common stock sells for $20.50 per share, its last dividend
was $1.80, and the company will pay a dividend of $1.89 at the end
of the current year.
Problem 9-10 Cost of Equity The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 5% per year in the future. Shelby's common stock sells for $20.50...
A stock just paid a dividend of $4.10. If the dividends are expected to grow at 5% forever and the required return is 15%, what is the stock's current price? (Enter only numbers and decimals in your response. Round to 2 decimal places.)