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In: Finance
Crabtree corp. pays a constant $8.60 divident on its stock. The company will maintain this divident...
Crabtree corp. pays a constant $8.60 divident on its stock. The company will maintain this divident for the next 11 years and will then cease paying dividends forever. The requird return on this stock is 11 percent. What is the current share price?
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jeff jeffy answered 2 years agoRelated Solutions
Burkhardt Corp. pays a constant $15.25 dividend on its stock. The company will maintain this dividend...
Burkhardt Corp. pays a constant $15.25 dividend on its stock.
The company will maintain this dividend for the next 9 years and
will then cease paying dividends forever. If the required return on
this stock is 9.2 percent, what is the current share price?
(Do not round intermediate calculations and
round your answer to 2 decimal places, e.g.,
32.16.)
Burnett Corp. pays a constant $7.85 dividend on its stock. The company will maintain this dividend...
Burnett Corp. pays a constant $7.85 dividend on its stock. The
company will maintain this dividend for the next 12 years and will
then cease paying dividends forever. If the required return on this
stock is 9 percent, what is the current share price?
Burnett Corp. pays a constant $7.85 dividend on its stock. The company will maintain this dividend...
Burnett Corp. pays a constant $7.85 dividend on its stock. The
company will maintain this dividend for the next 12 years and will
then cease paying dividends forever. If the required return on this
stock is 9 percent, what is the current share price? (Do
not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
Burnett Corp. pays a constant $23 dividend on its stock. The company will maintain this dividend...
Burnett Corp. pays a constant $23 dividend on its stock. The
company will maintain this dividend for the next 6 years and will
then cease paying dividends forever.
If the required return on this stock is 6 percent, what is the
current share price?
Multiple Choice
$113.10
$118.75
$138.00
$119.88
$110.84
Estes Park Corp. pays a constant $1.43 dividend on its stock. The company will maintain this...
Estes Park Corp. pays a constant $1.43 dividend on its stock.
The company will maintain this dividend for the next 11 years and
will then cease paying dividends forever. If the required return on
this stock is 9.59 percent, what is the current share price?
Burnett Corp. pays a constant $20 dividend on its stock. The company will maintain this dividend...
Burnett Corp. pays a constant $20 dividend on its stock. The
company will maintain this dividend for the next 12 years and will
then cease paying dividends forever.If the required return on this
stock is 6 percent, what is the current share price?
$167.68
$177.74
$164.32
$240.00
$176.06
Gruber Corp. pays a $9 dividend on its stock. The company will maintain this dividend for...
Gruber Corp. pays a $9 dividend on its stock. The company will
maintain this dividend for the next 3 years. In year 4, the
dividend will increase to $10 and then grow at a constant 5 percent
rate annually into perpetuity. If the required return on this stock
is 10 percent, what is the current share price?
A company is expected to maintain a constant 3 percent growth rate in its dividends indefinitely.
A company is expected to maintain a constant 3 percent growth
rate in its dividends indefinitely. If the company’s stock has a
dividend yield of 4.85 percent, what is the required return on the
stock? (Hint: dividend yield is a stock’s next dividend divided by
its price.)A company pays a constant $8.25 dividend on its stock.
The company will maintain this dividend for the next 13 years and
will then cease paying dividends forever. If the required return on
this...
a. Suppose a company currently pays an annual dividend of $3.20 on its common stock in...
a. Suppose a company currently pays an annual dividend of $3.20
on its common stock in a single annual installment, and management
plans on raising this dividend by 6 percent per year indefinitely.
If the required return on this stock is 12 percent, what is the
current share price?
b. Now suppose the company in (a) actually pays its annual
dividend in equal quarterly installments; thus, the company has
just paid a dividend of $.80 per share, as it has...
XYZ company presently pays a dividend of $ 1.50 per share on its common stock. The...
XYZ company presently pays a dividend of $ 1.50 per share on its
common
stock. The company expects to increase the dividend at a 20% annual
rate the
first four years and at the rate of 13% at the next four years then
the growth on
the dividend at a 7% thereafter. This phased growth patterns is in
keeping with
the expected life cycle of earnings. You are required a 16% return
to invest in
this stock. What value should...
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