Question
In: Finance
A company paid dividends of $3.20 per share in 2009, and just announced that it will...
A company paid dividends of $3.20 per share in 2009, and just announced that it will pay $9.49 in 2016. Estimate the compound annual growth rate of the dividends. The compound annual growth rate of the dividends is ___%.
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jeff jeffy answered 2 years agoRelated Solutions
(a) ABC Company has just paid a dividend of $1.00 per share. Dividends are paid annually....
(a) ABC Company has just paid a dividend of $1.00 per share.
Dividends are paid annually. Analysts estimate that dividends per
share will grow at a rate of 20% for the next 2 years, at 15% for
the subsequent 3 years, and at 3% thereafter. If the shareholders’
required rate of return is 12% per year, then what is the price of
the stock today? What will be the ex-dividend price at the end of
the first year? What will...
Sprockley Company has just paid a $1 per share dividend. It is expected that dividends will...
Sprockley Company has just paid a $1 per share dividend. It is
expected that dividends will grow at 16% per year for the next 2
years, at 10% the third year and 8% in year 4. After that, dividend
growth is expected to be 3% per year forever. Sprockley’s equity ?
is 0.9. If Treasury bills yield 5% and the market risk premium is
8.3%, what should be Sprockley’s current stock price?
$10.00
$12.05
$15.00
$42.00
$45.75
BBB company just paid their annual dividend of $1.20 per share. They are projecting dividends of...
BBB company just paid their annual dividend of $1.20 per share.
They are projecting dividends of $1.50 and $1.80 over the next two
years, respectively. After that, the dividend will increase by 3%
every year. What is the amount you are willing to pay for one share
of this stock if your required return is 10 percent?
(a) Consider a stock that pays annual dividends. It just paid $4.50 dividends per share, and...
(a) Consider a stock that pays
annual dividends. It just paid $4.50 dividends per share, and the
next dividend will be paid in 1 year. The dividends are expected to
remain constant at $4.50 per share for the next 10 years, after
which the dividends are expected to decrease at a rate of 0.5% per
year. The annual cost-of-capital is 15.50%. Find the fair value of
the stock today.
(b) Consider the same stock as
described in part (a), except...
(a) Consider a stock that pays annual dividends. It just paid $4.50 dividends per share, and...
(a) Consider a stock that pays annual dividends. It just paid
$4.50 dividends per share, and the next dividend will be paid in 1
year. The dividends are expected to remain constant at $4.50 per
share for the next 10 years, after which the dividends are expected
to decrease at a rate of 0.5% per year. The annual cost-of-capital
is 15.50%. Find the fair value of the stock today.
(b) Consider the same stock as described in part (a), except...
(a) Consider a stock that pays annual dividends. It just paid $4.50 dividends per share, and...
(a) Consider a stock that pays
annual dividends. It just paid $4.50 dividends per share, and the
next dividend will be paid in 1 year. The dividends are expected to
remain constant at $4.50 per share for the next 10 years, after
which the dividends are expected to decrease at a rate of 0.5% per
year. The annual cost-of-capital is 15.50%. Find the fair value of
the stock today.
(b) Consider the same stock as
described in part (a), except...
BLUECHIP PLC just paid a dividend of $2.00 per share. The managing director just announced that...
BLUECHIP PLC just paid a dividend of $2.00 per share. The
managing director just announced that it is planned to increase
dividends at a rate of 6% indefinitely. An appropriate discount
rate for this company is 16% per annum.
What is the firm’s expected dividend stream over the
next 3 years?
What is the firm’s current stock price?
What is the firm’s expected value in one
year?
d.What is the expected dividend yield, capital gains
yield and total return...
Fowler, Inc., just paid a dividend of $2.55 per share on itsstock. The dividends are...
Fowler, Inc., just paid a dividend of $2.55 per share on its
stock. The dividends are expected to grow at a constant rate of 3.9
percent per year, indefinitely. If investors require a return of
10.4 percent on this stock, what is the current price? What will
the price be in three years? In 15 years?
Farms Corp. just paid a dividend of $3.20 on its stock. The growth rate in dividends...
Farms Corp. just paid a dividend of $3.20 on its stock. The
growth rate in dividends is expected to be a constant 5 percent per
year indefinitely. Investors require a 15 percent return on the
stock for the first three years, a 13 percent return for the next
three years, and an 11 percent return thereafter. What is the
current share price?
Please provide some basic explanations for the calculations.
There are similar questions already answered but with no
explanation...
Hot Wings, Inc. has just paid a dividend of $2 per share and has announced that...
Hot Wings, Inc. has just paid a dividend of $2 per share and has
announced that it will increase the dividend by $1.5 per share for
each of the next 5 years, and then will increase the dividend at a
constant growth rate of 5% a year forever. If you want a return of
9 percent per year, how much will you pay for the stock?
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