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In: Finance
An enterprise is expected to pay a dividend of $0.65 in one year. The dividend is...
An enterprise is expected to pay a dividend of $0.65 in one year. The dividend is expected to grow at a rate of 12% per year for the next five years as the firm goes through a period of rapid growth. After that, it is expected to grow at an average rate of 7% per year forever. If the required return is 22%, what is the value of a share?
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jeff jeffy answered 2 years agoRelated Solutions
Halliford Corporation Corporation will pay an annual dividend of $ 0.65$0.65 one year from now. Analysts...
Halliford Corporation Corporation will pay an annual dividend of
$ 0.65$0.65 one year from now. Analysts expect this dividend to
grow at 12.2 %12.2% per year thereafter until the 44th year.
Thereafter, growth will level off at 2.4 %2.4% per year. According
to the dividend-discount model, what is the value of a share of
Halliford stock if the firm's equity cost of capital is 8.9
%8.9%?
Assume Gillette Corporation will pay an annual dividend of $ 0.65 one year from now. Analysts...
Assume Gillette Corporation will pay an annual dividend of $
0.65 one year from now. Analysts expect this dividend to grow at
11.9 % per year thereafter until the 6th year. Thereafter, growth
will level off at 2.4 % per year.
According to the dividend-discount model, what is the value of
a share of Gillette stock if the firm's equity cost of capital is
7.3 %?
Assume Gillette Corporation will pay an annual dividend of $ 0.65 one year from now. Analysts...
Assume Gillette Corporation will pay an annual dividend of $
0.65 one year from now. Analysts expect this dividend to grow at
11.9 % per year thereafter until the 6th year. Thereafter, growth
will level off at 2.4 % per year.
According to the dividend-discount model, what is the value of
a share of Gillette stock if the firm's equity cost of capital is
7.3 %?
Assume Stanton Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect...
Assume Stanton Corporation will pay an annual dividend of $0.65
one year from now. Analysts expect this dividend to grow at 12% per
year thereafter until the fifth year. After then, growth will level
off at 2% per year. The firm’s equity cost of capital is 8%. Use
the dividend-discount model to answer the following questions. What
is the value of a share of Stanton stock now? If the firm’s share
price is currently trading at $13, will you sell...
Assume Gill Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect...
Assume Gill Corporation will pay an annual dividend of $0.65
one year from now. Analysts expect this dividend to grow at 11.6%
per year thereafter until the 6th year. Thereafter, growth will
level off at 2.4% per year. According to the dividend-discount
model, what is the value of a share of Gill stock if the firm's
equity cost of capital is 8.1%?
The value of Gillette's stock is _____?
Assume Gillette Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect...
Assume Gillette Corporation will pay an annual dividend of $0.65
one year from now. Analysts expect this dividend to grow at 12.1%
per year thereafter until the 5th year. Thereafter, growth will
level off at 1.6% per year. According to the dividend-discount
model, what is the value of a share of Gillette stock if the
firm's equity cost of capital is 8.8%?
The value of Gillette's stock is $___
Assume Gillette Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect...
Assume Gillette Corporation will pay an annual dividend of $0.65
one year from now. Analysts expect this dividend to grow at 12% per
year until the 5th year. Thereafter, growth will level off at 2%
per year. According to the dividend-discount model, what is the
value of a share of Gillette stock if the firm's equity cost of
capital is 8%?
A stock is expected to pay a dividend of $10 in one year. Its future annual...
A stock is expected to pay a dividend of $10 in one year. Its
future annual dividends are expected to grow by 20% pa. The next
dividend of $10 will be in one year, and the year after that the
dividend will be $12 (=10*(1+0.2)^1), and a year later $14.4
(=10*(1+0.2)^2) and so on forever. Its required total return is 50%
pa. The total required return and growth rate of dividends are
given as effective annual rates. Calculate the payback...
A stock is expected to pay a dividend of $10 in one year. Its future annual...
A stock is expected to pay a dividend of $10 in
one year. Its future annual dividends are expected to grow by
20% pa. The next dividend of $10 will be in one
year, and the year after that the dividend will be $12
(=10*(1+0.2)^1), and a year later $14.4 (=10*(1+0.2)^2) and so on
forever.
Its required total return is 50% pa. The total
required return and growth rate of dividends are given as effective
annual rates.
Calculate the payback...
Q:Forever 21 is expected to pay an annual dividend of $2.24 per share in one year,...
Q:Forever 21 is expected to pay an annual dividend of $2.24 per
share in one year, which is then expected to grow by 8% per year.
The required rate of return is 14%.
A:What is the current stock price?
B:What is the current stock price if the annual dividend of
$2.24 has just been paid? (i.e. paid yesterday or earlier
today)
C:What is the current stock price if the annual dividend of
$2.24 his about to be paid? (i.e. paid...
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