Question


13. Hyperion Manufacturing is expected to pay a dividend of $2.25 per share at the end of the year. The stock sells for $75 p
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Stock Price = Expected Dividend next year/(Required Return - Growth rate)

75 = 2.25/(12% - growth rate)

growth rate = 9%

Hence, the answer is d.

Add a comment
Know the answer?
Add Answer to:
13. Hyperion Manufacturing is expected to pay a dividend of $2.25 per share at the end...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of...

    Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $27.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?

  • Jimbo Manufacturing is expected to pay a dividend of $1.25 per share at the end of...

    Jimbo Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $32.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? A. 4.36% B. 5.65% C. 6.65% D. 7.25% E. 8.55%

  • Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of...

    Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $57.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?

  • Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of...

    Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $33.00 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?

  • Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of...

    Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $25.00 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? Select the correct answer. a. 5.88% b. 5.69% c. 6.07% d. 5.50% e. 6.26%

  • You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.25 a share at...

    You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.25 a share at the end of the year (D1 = $2.25) and has a beta of 0.9. The risk-free rate is 5.8%, and the market risk premium is 6%. Justus currently sells for $26.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the...

  • You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.25 a share at...

    You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.25 a share at the end of the year (D1 = $2.25) and has a beta of 0.9. The risk-free rate is 3.6%, and the market risk premium is 5.0%. Justus currently sells for $47.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the...

  • Equilibrium expected growth rate

    gay manufacturing is expected to pay a dividend of $1.25 pe share at the end of the year (D1=$1.25). The stock sells for $21.50 per share, and its required rate ofreturn is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?

  • Richardson Brothers is expected to pay a $1.25 per share dividend at the end of the...

    Richardson Brothers is expected to pay a $1.25 per share dividend at the end of the year (that is, D 1 = $1.25). The dividend is expected to grow at a constant rate of 7 percent a year. The required rate of return on the stock, r s, is 12 percent. What is the stock’s value per share? a. $11.15 b. $23.36 c. $26.75 d. $10.42 e. $25.00

  • 9.2/9.3 Tresnan Brothers is expected to pay a $2.90 per share dividend at the end of...

    9.2/9.3 Tresnan Brothers is expected to pay a $2.90 per share dividend at the end of the year (i.e., D1 = $2.90). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 13%. What is the stock's current value per share? Round your answer to the nearest cent. Holtzman Clothiers's stock currently sells for $37.00 a share. It just paid a dividend of $3.25 a share...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT