Question
In: Finance
A company has just paid an annual dividend of $0.99. Analysts are predicting a 10.6 %...
A company has just paid an annual dividend of $0.99. Analysts are predicting a 10.6 % per year growth rate in earnings over the next 5 years. After that, the company's earnings are expected to grow at the current industry's average of 5.6 % per year. If the firm's equity cost of capital is 8.2 %per year and its dividend payout ratio remains constant, what price does the dividend-discount model predict the company's stock should sell for?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Assume Highline Company has just paid an annual dividend of $1.04 . Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of
$1.04 . Analysts are predicting an 10.3% per year growth rate in
earnings over the next five years. After then, Highline's earnings
are expected to grow at the current industry average of 5.3% per
year. If Highline's equity cost of capital is 9.4% per year and
its dividend payout ratio remains constant, for what price does
the dividend-discount model predict Highline stock should
sell?
The value of Highline's stock is...
Assume Highline Company has just paid an annual dividend of $ 0.98 . Analysts are predicting...
Assume Highline Company has just paid an annual dividend of $
0.98 . Analysts are predicting an 11.9 % per year growth rate in
earnings over the next five years. After then, Highline's earnings
are expected to grow at the current industry average of 4.9 % per
year. If Highline's equity cost of capital is 7.8 % per year and
its dividend payout ratio remains constant, for what price does
the dividend-discount model predict Highline stock should
sell?
The Value...
Assume Highline Company has just paid an annual dividend of $ 1.01. Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of $
1.01. Analysts are predicting an 10.1 % per year growth rate in
earnings over the next five years. After then, Highline's earnings
are expected to grow at the current industry average of 5.3 % per
year. If Highline's equity cost of capital is 8.6 % per year and
its dividend payout ratio remains constant, for what price does
the dividend-discount model predict Highline stock should
sell?
Assume Highline Company has just paid an annual dividend of $ 1.03. Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of $
1.03. Analysts are predicting an 10.4 % per year growth rate in
earnings over the next five years. After then, Highline's earnings
are expected to grow at the current industry average of 4.8 % per
year. If Highline's equity cost of capital is 9.1 % per year and
its dividend payout ratio remains constant, for what price does
the dividend-discount model predict Highline stock should
sell?
Assume Highline Company has just paid an annual dividend of $ 1.02 Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of
$ 1.02
Analysts are predicting an
10.9 %
per year growth rate in earnings over the next five years.
After?then, Highline's earnings are expected to grow at the current
industry average of
5.1 %
per year. If? Highline's equity cost of capital is
8.5 %
per year and its dividend payout ratio remains? constant, for
what price does the? dividend-discount model predict Highline stock
should? sell?
Assume Highline Company has just paid an annual dividend of $ 1.02 Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of $
1.02 Analysts are predicting an 10.1 % per year growth rate in
earnings over the next five years. Afterthen, Highline's earnings
are expected to grow at the current industry average of 5.7 % per
year. If Highline's equity cost of capital is 9.3 % per year and
its dividend payout ratio remains constant, for what price does
the dividend-discount model predict Highline stock should
sell?
The value of Highline's...
Assume Highline Company has just paid an annual dividend of $ 0.92. Analysts are predicting an...
Assume Highline Company has just paid an annual dividend of $
0.92. Analysts are predicting an 10.3 % per year growth rate in
earnings over the next five years. After then, Highline's earnings
are expected to grow at the current industry average of 5.3 % per
year. If Highline's equity cost of capital is 9.1 % per year and
its dividend payout ratio remains constant, for what price does
the dividend-discount model predict Highline stock should
sell?
Assume Highline Company has just paid an annual dividend of $1.06. Analysts are predicting an 11.7%...
Assume Highline Company has just paid an annual dividend of
$1.06. Analysts are predicting an 11.7% per year growth rate in
earnings over the next five years. After then, Highline's earnings
are expected to grow at the current industry average of 5.1% per
year. If Highline's equity cost of capital is 7.5% per year and
its dividend payout ratio remains constant, for what price does
the dividend-discount model predict Highline stock should
sell?
Assume Highline Company has just paid an annual dividend of $1.08. Analysts are predicting an 11.7%...
Assume Highline Company has just paid an annual dividend of
$1.08. Analysts are predicting an 11.7% per year growth rate in
earnings over the next five years. After then, Highline's earnings
are expected to grow at the current industry average of 5.7% per
year. If Highline's equity cost of capital is 9.3% per year and
its dividend payout ratio remains constant, for what price does
the dividend-discount model predict Highline stock should
sell?
The value of Highline's stock is? (Round...
Assume Highline Company has just paid an annual dividend of $0.93. Analysts are predicting an 11.5%...
Assume Highline Company has just paid an annual dividend of
$0.93. Analysts are predicting an 11.5% per year growth rate in
earnings over the next five years. After then, Highline's earnings
are expected to grow at the current industry average of 5.6% per
year. If Highline's equity cost of capital is 8.7% per year and
its dividend payout ratio remainsconstant, for what price does
the dividend-discount model predict Highline stock should
sell?
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