Question

In: Finance

Assume Highline Company has just paid an annual dividend of $1.04 . Analysts are predicting an...

Assume Highline Company has just paid an annual dividend of $1.04 . Analysts are predicting an 10.3% per year growth rate in earnings over the next five years. After​ then, Highline's earnings are expected to grow at the current industry average of 5.3% per year. If​ Highline's equity cost of capital is 9.4% per year and its dividend payout ratio remains​ constant, for what price does the​ dividend-discount model predict Highline stock should​ sell?

The value of​ Highline's stock is ​$

Solutions

Expert Solution


Related Solutions

Assume Highline Company has just paid an annual dividend of $1.04. Analysts are predicting an 10.7%
Assume Highline Company has just paid an annual dividend of $1.04. Analysts are predicting an 10.7% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 4.7% per year. If Highline's equity cost of capital is 7.7% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is s...
Assume Highline Company has just paid an annual dividend of $ 0.98 . Analysts are predicting...
Assume Highline Company has just paid an annual dividend of $ 0.98 . Analysts are predicting an 11.9 % per year growth rate in earnings over the next five years. After​ then, Highline's earnings are expected to grow at the current industry average of 4.9 % per year. If​ Highline's equity cost of capital is 7.8 % per year and its dividend payout ratio remains​ constant, for what price does the​ dividend-discount model predict Highline stock should​ sell? The Value...
Assume Highline Company has just paid an annual dividend of $ 1.01. Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of $ 1.01. Analysts are predicting an 10.1 % per year growth rate in earnings over the next five years. After​ then, Highline's earnings are expected to grow at the current industry average of 5.3 % per year. If​ Highline's equity cost of capital is 8.6 % per year and its dividend payout ratio remains​ constant, for what price does the​ dividend-discount model predict Highline stock should​ sell?
Assume Highline Company has just paid an annual dividend of $ 1.03. Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of $ 1.03. Analysts are predicting an 10.4 % per year growth rate in earnings over the next five years. After​ then, Highline's earnings are expected to grow at the current industry average of 4.8 % per year. If​ Highline's equity cost of capital is 9.1 % per year and its dividend payout ratio remains​ constant, for what price does the​ dividend-discount model predict Highline stock should​ sell?
Assume Highline Company has just paid an annual dividend of $ 1.02 Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of $ 1.02 Analysts are predicting an 10.9 % per year growth rate in earnings over the next five years. After?then, Highline's earnings are expected to grow at the current industry average of 5.1 % per year. If? Highline's equity cost of capital is 8.5 % per year and its dividend payout ratio remains? constant, for what price does the? dividend-discount model predict Highline stock should? sell?
Assume Highline Company has just paid an annual dividend of $ 1.02 Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of $ 1.02 Analysts are predicting an 10.1 % per year growth rate in earnings over the next five years. After​then, Highline's earnings are expected to grow at the current industry average of 5.7 % per year. If​ Highline's equity cost of capital is 9.3 % per year and its dividend payout ratio remains​ constant, for what price does the​ dividend-discount model predict Highline stock should​ sell? The value of​ Highline's...
Assume Highline Company has just paid an annual dividend of $1.06. Analysts are predicting an 11.7%...
Assume Highline Company has just paid an annual dividend of $1.06. Analysts are predicting an 11.7% per year growth rate in earnings over the next five years. After​ then, Highline's earnings are expected to grow at the current industry average of 5.1% per year. If​ Highline's equity cost of capital is 7.5% per year and its dividend payout ratio remains​ constant, for what price does the​ dividend-discount model predict Highline stock should​ sell?
Assume Highline Company has just paid an annual dividend of $1.08. Analysts are predicting an 11.7%...
Assume Highline Company has just paid an annual dividend of $1.08. Analysts are predicting an 11.7% per year growth rate in earnings over the next five years. After​ then, Highline's earnings are expected to grow at the current industry average of 5.7% per year. If​ Highline's equity cost of capital is 9.3% per year and its dividend payout ratio remains​ constant, for what price does the​ dividend-discount model predict Highline stock should​ sell? The value of​ Highline's stock is? ​(Round...
Assume Highline Company has just paid an annual dividend of $0.93. Analysts are predicting an 11.5%...
Assume Highline Company has just paid an annual dividend of $0.93. Analysts are predicting an 11.5% per year growth rate in earnings over the next five years. After​ then, Highline's earnings are expected to grow at the current industry average of 5.6% per year. If​ Highline's equity cost of capital is 8.7% per year and its dividend payout ratio remains​constant, for what price does the​ dividend-discount model predict Highline stock should​ sell?
Assume Highline Company has just paid an annual dividend of $1.08. Analysts are predicting an 10.2%...
Assume Highline Company has just paid an annual dividend of $1.08. Analysts are predicting an 10.2% per year growth rate in earnings over the next five years. After​ then, Highline's earnings are expected to grow at the current industry average of 5.1% per year. If​ Highline's equity cost of capital is 9.1% per year and its dividend payout ratio remains​ constant, for what price does the​ dividend-discount model predict Highline stock should​ sell? The value of​ Highline's stock is $____....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT