10. You expect to receive a $1.00 dividend the next time your
stock pays dividends. If...
10. You expect to receive a $1.00 dividend the next time your
stock pays dividends. If your required rate of return (RRR) on the
“dog” is 20% and the growth rate is 2%, what should this stock sell
for?
You expect a share of stock to pay dividends of $1.00, $1.25,
and $1.50 for each of the next 3 years. After that, the dividends
will grow at the sustainable growth rate until infinity. a.
Calculate the sustainable growth rate assuming the company
generates a rate of return of 20% on its equity and maintain a
plowback ratio of 0.3. b. Assuming investors expect a 12% rate of
return on the stock, what is the price of the stock today?
A share of preferred stock pays a
quarterly dividend of $1.00. If the price of the stock is $50, what
is the effective annual (not nominal) rate of
return on the preferred stock?
A stocks next 2 dividends are as follows: $0.25 and $1.00. After
that, the stock is expected to grow at a rate of 4% indefinitely.
The required return on this stock is 16%. Compute its fair market
value.
If a preferred stock from the FIN340 Company pays $1.00 in
annual dividends and the required return on the preferred stock is
5.0%, what is the current value of the stock?
A fast growing firm paid a dividend of $1.00 per share during
the most recent year, The dividend is expected to increase at a
rate of 20.0% per year for the next 3 years , Afterwards, a more
stable 5.00% annual growth rate should be assumed - If a...
You expect to receive a one-time payment of $1,000 in 10 years
and the second payment of $1,500 in 15 years. The annual interest
rate is 9%.Part 1What is the present value of the combined cash flows?Part 2If you invest the amount that you'll receive in 10 years and
include the cash flow in year 15, how much money will you have in
year 15?Part 3If you invest the amount found in part 1 for 10 years, how much
will...
If you were an individual, would you prefer to receive cash
dividends, stock dividends, or stock split? Describe why and the
benefits to support your decision.
Lina buys a common stock that pays annual dividends. The first
dividend of $25 is at the end of the third year and each subsequent
annual dividend is $4 greater than the preceding one.
Calculate the price of this stock given an effective annual
interest rate of 4.5 %
5.
You expect receive $3.00 dividend in year 1, $2.20 dividend in year
2 and $2.40 dividend in year 3 along with stock price of $ 20.450.
Now how much would you be willing to pay
i need now
value is 10%
"Stock
Dividends"
Please respond to the following:
A company is considering issuing a 10% stock dividend to common
stockholders. What are the accounting implications of the stock
dividend?
Should the stock dividend be issued to all stockholders of
record or to stockholders of record excluding shares held as
treasury stock? Why or why not?
You forecast a company's dividends for the next four
years. In Year 1, you expect to receive $1.00 in dividends. In Year
2, you expect to receive $1.10 in dividends. In Year 3, you expect
to receive $1.20 in dividends. In Year 4, you expect to receive
$1.30. After Year 4, dividends are expected to grow at 2%. The
rate of return for similar risk common stock is 7%. What is the
current value of this company's stock?