current dividend is $2; current stock price is $30.00; future growth of dividend is 6%. what...
Homework Answers
As per DCF, Stock Price = Expected Dividend next year/(Cost of Equity - Growth rate)
30 = 2(1.06)/(Cost - 6%)
Cost of Equity = 13.06666%
i.e. 13.07%
Add Answer to:
current dividend is $2; current stock price is $30.00; future
growth of dividend is 6%. what...
current dividend is $2; current stock price is $30.00; future growth of dividend is 6%. what...
current dividend is $2; current stock price is $30.00; future growth of dividend is 6%. what is this firm's cost of equity using the DCF approach?
termediate Prablems COST OF COMMON EQUITY The future earnings, dividends, and common stock price of Carpetto...
termediate Prablems COST OF COMMON EQUITY The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 7% per year. Carpetto's common stock currently sells for $23.00 per share; its last dividend was $2.00; and it will pay a $2.14 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? b. If the firm's beta is 1.6, the risk-free rate is 9%, and the average...
The cost of equity using the discounted cash flow (or dividend growth) approach Pierce Enterprises's stock...
The cost of equity using the discounted cash flow (or dividend growth) approach Pierce Enterprises's stock is currently selling for $25.67 per share, and the firm expects its per-share dividend to be $1.38 in one year. Analysts project the firm's growth rate to be constant at 5.72%. Estimating the cost of equity using the discounted cash flow (or dividend growth) approach, what is Pierce's cost of internal equity? O 10.55% 11.66% 14.99% 11.10% Estimating growth rates It is often difficult...
Problem 10-6 Cost of Common Equity The future earnings, dividends, and common stock price of Callahan...
Problem 10-6 Cost of Common Equity The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $23.50 per share; its last dividend was $2.50; and it will pay a $2.60 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations. % b....
Problem 10-6 Cost of Common Equity The future earnings, dividends, and common stock price of Callahan...
Problem 10-6 Cost of Common Equity The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6 % per year. Callahan's common stock currently sells for $22.75 per share; its last dividend was $2.00; and it will pay a $2.12 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations. b....
Problem 10-6 Cost of Common Equity The future earnings, dividends, and common stock price of Callahan Technologies Inc....
Problem 10-6 Cost of Common Equity The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6% per year. Callahan's common stock currently sells for $26.75 per share; its last dividend was $2.00; and it will pay a $2.12 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations. % b....
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow...
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $22.50 per share; its last dividend was $1.50; and it will pay a $1.56 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % If the firm's beta is 2.1, the risk-free rate...
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow...
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Callahan's common stock currently sells for $27.50 per share; its last dividend was $1.60; and it will pay a $1.68 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. b. If the firm's beta is 1.8, the risk-free...
COST OF COMMON EQUITY The future earnings, dividends, and common stock price of Callahan Technologies Inc....
COST OF COMMON EQUITY The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $29.50 per share; its last dividend was $1.50; and it will pay a $1.56 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations. If the firm's beta is...
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow...
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 3% per year. Callahan's common stock currently sells for $23.75 per share; its last dividend was $2.00; and it will pay a $2.06 dividend at the end of the current year. 1. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. 2. If the firm's beta is 0.8, the risk-free...
termediate Prablems COST OF COMMON EQUITY The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 7% per year. Carpetto's common stock currently sells for $23.00 per share; its last dividend was $2.00; and it will pay a $2.14 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? b. If the firm's beta is 1.6, the risk-free rate is 9%, and the average...
The cost of equity using the discounted cash flow (or dividend growth) approach Pierce Enterprises's stock is currently selling for $25.67 per share, and the firm expects its per-share dividend to be $1.38 in one year. Analysts project the firm's growth rate to be constant at 5.72%. Estimating the cost of equity using the discounted cash flow (or dividend growth) approach, what is Pierce's cost of internal equity? O 10.55% 11.66% 14.99% 11.10% Estimating growth rates It is often difficult...
Problem 10-6 Cost of Common Equity The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $23.50 per share; its last dividend was $2.50; and it will pay a $2.60 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations. % b....
Problem 10-6 Cost of Common Equity The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6 % per year. Callahan's common stock currently sells for $22.75 per share; its last dividend was $2.00; and it will pay a $2.12 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations. b....
Problem 10-6 Cost of Common Equity The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 6% per year. Callahan's common stock currently sells for $26.75 per share; its last dividend was $2.00; and it will pay a $2.12 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Round your answer to two decimal places. Do not round your intermediate calculations. % b....
The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Callahan's common stock currently sells for $27.50 per share; its last dividend was $1.60; and it will pay a $1.68 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. b. If the firm's beta is 1.8, the risk-free...
Most questions answered within 3 hours.
-
Eukaryotic cells have __ which is similar to prokaryotes of
Archaea.
A Ester-linked membrane lipids
B...
asked 6 minutes ago -
true or false. If work is done on a system by it's
surroundings, its value is...
asked 10 minutes ago -
Rene Descartes establishes a dualist approach to the world.
Explain this dualism, and how it connects...
asked 17 minutes ago -
According to a recent national Gallup Poll of U.S. smartphone
user, 35% upgrade their cell phone...
asked 20 minutes ago -
Suppose researchers perform a large-sample test of a population
proportion where the null hypothesis is that...
asked 19 minutes ago -
Jessica is single and has taxable income of $305,000 of which
$130,000 is attributable to her...
asked 24 minutes ago -
Can someone help me fill in the first part of this c++ code:
I need it...
asked 26 minutes ago -
A reaction vessel at 27 ∘C contains a mixture of SO2(P=3.10 atm
) and O2(P=1.00 atm...
asked 46 minutes ago -
A scientist randomly mutates the DNA of a bacterium. She then
sequences the bacterium’s daughter cells,...
asked 57 minutes ago -
2. Content theories attempt to explain work behaviors based on
__________.
a. the relationship between values...
asked 49 minutes ago -
Discuss the impact of technology on Medieval society and culture
and the impact of society and...
asked 46 minutes ago -
Assignment 3: Introduction & Environmental Analysis,
SWOT, Marketing Objectives (Goals) Marketing 4100
Directions
Total Point Value:...
asked 38 minutes ago