ABC, Inc. just paid an annual dividend (D0) of $2 per share on earnings of $3....

ABC, Inc. just paid an annual dividend (D0) of $2 per share on earnings of $3. You expect the firm’s dividends to grow at 15% over the next two years based on its expansion plans. After that you expect dividends to grow at the industry average of 8% per year. The riskfree rate is 3%, the market risk premium is 5%, and its beta is 1.1, so the discount rate is 8.5%. What is the present value of the first 2 dividends? (use 2 decimal places without $, so $10.00 is 10.00) with all the steps and formula

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jeff jeffy answered 1 year ago

ABC, Inc. just paid an annual dividend (D0) of $1 per share on earnings of $2....

ABC, Inc. just paid an annual dividend (D0) of $1 per share on earnings of $2. You expect the firm’s dividends to grow at 20% over the next two years based on its expansion plans. After that you expect dividends to grow at the industry average of 7% per year. The riskfree rate is 3%, the market risk premium is 6%, and its beta is 1.2. Using CAPM, what is the discount rate used to calculate the intrinsic value? (in...

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A company has just paid a dividend of $ 2 per share, D0=$ 2 . It...

A company has just paid a dividend of $ 2 per share, D0=$ 2 . It is estimated that the company's dividend will grow at a rate of 18 % percent per year for the next 2 years, then the dividend will grow at a constant rate of 7 % thereafter. The company's stock has a beta equal to 1.4, the risk-free rate is 4.5 percent, and the market risk premium is 4 percent. What is your estimate of the...

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National Advertising just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.35, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price?

Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share

Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.25, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price?

DB company just paid a dividend of $ D0 per share. It is estimated that the...

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Hall & Marks just paid a $1.90 per share dividend yesterday.(that is, D0 = $1.90). The...

Hall & Marks just paid a $1.90 per share dividend yesterday.(that is, D0 = $1.90). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 14%. What is the stock's current value per share?

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