Company ABC just paid a cash dividend of $0.50 per share. Investors require a 15% return....

Company ABC just paid a cash dividend of $0.50 per share. Investors require a 15% return. If the dividend is expected to grow at a steady 6% per year, what is the current value of a share? What will the share be worth in four years?

Expert Solution

jeff jeffy answered 1 year ago

Shengyuan Company has just paid a cash dividend of 20 cents per share. Investors require a...

Shengyuan Company has just paid a cash dividend of 20 cents per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady rate of 4% per year, what is the current value of the share? What will the share be worth in five years? Show working out. P0 = D1/(r – g) = D0 (1 + g)/(r – g)

Company X just made a dividend payment of $0.50 per share. Investors expect the dividend to...

Company X just made a dividend payment of $0.50 per share. Investors expect the dividend to grow by 11% per year in the first two years and then by 3% per year starting in the third year. What's the maximum price investors are willing to pay for Company X's stocks if they require an annual return rate of 13%?

(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...

Bozo Inc. just paid an annual dividend of $1.50 per share, and the required return for this stock is 15%.

Bozo Inc. just paid an annual dividend of $1.50 per share, and the required return for this stock is 15%. A. Calculate Bozo's stock value with the following assumptions A. No dividend growth B. A constant growth of 5% C. A constant growth of 10% D. A constant growth of 5% and a requiredi return of 10%

A company just paid a dividend of $1.95 per share, and that dividend is expected to...

A company just paid a dividend of $1.95 per share, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The company's beta is 1.65, the market risk premium is 8.5%, and the risk-free rate is 6.50%. What is the company's current stock price?

Shengyuan Company has just paid a cash dividend of 20 cents per share.

a) Shengyuan Company has just paid a cash dividend of 20 cents per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady rate of 4% per year, what is the current value of the share? What will the share be worth in five years? Show working out. ...

If a company pays a dividend of $0.50 per share and this dividend is expected to...

If a company pays a dividend of $0.50 per share and this dividend is expected to rise at a constant rate of 5%, what dividend amount will be paid in 40 years?

A company just paid a dividend of $1.53 per share and you expect the dividend to...

A company just paid a dividend of $1.53 per share and you expect the dividend to grow at a constant rate of 5.6% per year indefinitely into the future. If the required rate of return is 13.4% per year, what would be a fair price for this stock today? (Answer to the nearest penny per share.)

A company just paid a dividend of $0.79 per share and you expect the dividend to...

A company just paid a dividend of $0.79 per share and you expect the dividend to grow at a constant rate of 5.2% per year indefinitely into the future. If the required rate of return is 12.4% per year, what would be a fair price for this stock today? (Answer to the nearest penny per share.) A 6.4% coupon bearing bond pays interest semi-annually and has a maturity of 6 years. If the current price of the bond is $1,023.87,...

The Jameson Company just paid a dividend of $0.75 per share, and that dividend is expected...

The Jameson Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.75, the market risk premium is 5.00%, and the risk-free rate is 4.00%. What is Jameson's current stock price, P0?

Question