How much would you be willing to pay for one share of BUS320 stock if the...
How much would you be willing to pay for one share of BUS320 stock if the company will pay $5 annual dividend next year, the dividends increase by 5 percent annually, and you require a return of 15 percent? (Please Show All Work)
Homework Answers
The price that we would be willing to pay is computed as shown below:
= Annual dividend next year / ( required rate of return - growth rate )
= $ 5 / ( 0.15 - 0.05 )
= $ 50
Feel free to ask in case of any query relating to this question
Add Answer to:
How much would you be willing to pay for one share of BUS320 stock if the...
8. How much are you willing to pay for one share of Jumbo Trout stock if...
8. How much are you willing to pay for one share of Jumbo Trout stock if the company is expected to pay an annual dividend of $0.45 at the end of next year, the dividends increase by 3.5 percent annually indefinitely and you require a 10 percent rate of return? $6.92 Please Show All Work
How much are you willing to pay for one share of APOL stock if the company...
How much are you willing to pay for one share of APOL stock if the company just paid an annual dividend of $2.25, the dividends increase by 2 percent annually, and you require a return of 15 percent?
How much are you willing to pay for one share of Jumbo Trout stock if the...
How much are you willing to pay for one share of Jumbo Trout stock if the company just paid a $0.70 annual dividend, the dividends increase by 2.5 percent annually, and you require a 10 percent rate of return?
How much are you willing to pay for one share of ABC, Inc. stock if the...
How much are you willing to pay for one share of ABC, Inc. stock if the company just paid an annual dividend of $2.00, the dividends increase by 4.0 percent annually, and you require a return of 13.0 percent? Group of answer choices 21.01 23.11 18.12 19.74 27.39
How much are you willing to pay for one share of LBM stock if the company...
How much are you willing to pay for one share of LBM stock if the company just paid an annual dividend of $2.24, the dividends increase by 2.3 percent annually, and you require a return of 14.8 percent? Select one: A. $19.29 B. $17.59 C. $18.21 D. $18.33 E, $19.33
How much are you willing to pay for one share of Salmon Brothers Co. stock today...
How much are you willing to pay for one share of Salmon Brothers Co. stock today if the company just paid a $0.70 annual dividend, the dividends increase by 2 percent annually, and you require a 10 percent rate of return? (Compute P0)
Problem1: The XYZ Co. just paid a dividend of $1.95 per share on its stock. The...
Problem1: The XYZ 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% per year indefinitely. Assume investorsrequire a return of 10.5 % on the XYZ Co. stock. What will the price be in 3 years? Show yourwork/calculations Problem2: The ABCorp. paid an annual dividend of $1.37 a share last month. Today, the company announced that future dividends will be increasing by 2.8 percent annually. If...
Business Calculators Inc. will pay an annual dividend of $2.25 per share next year. The company...
Business Calculators Inc. will pay an annual dividend of $2.25 per share next year. The company just announced that future dividends will be increasing by 0.75 percent annually. How much are you willing to pay for one share of this stock if you require a rate of return of 12.25 percent? Multiple Choice
A company is planning to pay $.80 annual dividend next year. If the dividend will increase...
A company is planning to pay $.80 annual dividend next year. If the dividend will increase by 4 percent annually and you require an 8 percent rate of return, how much are you willing to pay for one share of stock? $10.00 $20.00 $20.80 $21.63
Question 1 1 pts The common stock of Ecolab pays an annual dividend of $1.84 a...
Question 1 1 pts The common stock of Ecolab pays an annual dividend of $1.84 a share. The company has promised to maintain a constant dividend regardless of economic conditions. How much would investors be willing to pay for one share of Ecolab's stock assuming an equity cost of capital of 13.6%? $13.79 $13.53 $14.56 $14.01 Question 3 1 pts Whole Foods will pay an annual dividend of $1.85 next year. The company just announced that future dividends will be...
How much are you willing to pay for one share of LBM stock if the company just paid an annual dividend of $2.24, the dividends increase by 2.3 percent annually, and you require a return of 14.8 percent? Select one: A. $19.29 B. $17.59 C. $18.21 D. $18.33 E, $19.33
Business Calculators Inc. will pay an annual dividend of $2.25 per share next year. The company just announced that future dividends will be increasing by 0.75 percent annually. How much are you willing to pay for one share of this stock if you require a rate of return of 12.25 percent? Multiple Choice
Question 1 1 pts The common stock of Ecolab pays an annual dividend of $1.84 a share. The company has promised to maintain a constant dividend regardless of economic conditions. How much would investors be willing to pay for one share of Ecolab's stock assuming an equity cost of capital of 13.6%? $13.79 $13.53 $14.56 $14.01 Question 3 1 pts Whole Foods will pay an annual dividend of $1.85 next year. The company just announced that future dividends will be...
Most questions answered within 3 hours.
-
During Heaton Company’s first two years of operations, it
reported absorption costing net operating income as...
asked 7 minutes ago -
Consider testing the
hypotheses:
H0: p = 0.56
H1: p > 0.56
where p is
the...
asked 10 minutes ago -
In a two-factor analysis of variance a main effect is defined as
____.
a. the unique...
asked 18 minutes ago -
A bank's loan officer rates applicants for credit. The ratings
are normally distributed with a mean...
asked 18 minutes ago -
Fill in the following information for Adipic Acid: molecular
weight, g or ml, mole, melting point,...
asked 24 minutes ago -
how
to use a for loop to iterate over the string below and print each
character...
asked 26 minutes ago -
Please type answer, Thanks.
Respond to the following in a minimum of 175
words:
Research industry...
asked 25 minutes ago -
Assume that all interest rates in the economy increase from 9
percent to 10 percent. Which...
asked 35 minutes ago -
Describe the function of a Change Control Board.
When calculating Planned Value (PV), what is the...
asked 41 minutes ago -
The customer help center in your company receives calls from
customers who need help with some...
asked 52 minutes ago -
A manufacturer wished to compare the wearing qualities of two
different types of automobile tires, A...
asked 50 minutes ago -
Write a MATLAB script file that will sum all the positive
entries in V and stop...
asked 58 minutes ago