XYZ, Inc. just paid dividend of $15.12. The dividends are expected to grow at 1.23% each year forever.

XYZ, Inc. just paid dividend of $15.12. The dividends are expected to grow at 1.23% each year forever. The required rate of return on the stock is 24.17%. What is today's price of the stock?

Solutions

Expert Solution

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

12. XYZ, Inc. just paid $2.00 dividend. Dividends are expected to grow at a 20% rate...

12. XYZ, Inc. just paid $2.00 dividend. Dividends are expected to grow at a 20% rate for the next five years. After that, the company has stated that the annual dividend will be $2.50 per share indefinitely. The required rate of return is 10%. (a) What is this stock worth to you per share today? (b) What is the expected stock price next year? (c) What is the expected stock price 20 years from today? Could you explain the question...

ABC, Inc. just paid a dividend of $1.2. The dividends are expected to grow at 5.09%...

ABC, Inc. just paid a dividend of $1.2. The dividends are expected to grow at 5.09% each year forever. The required rate of return on the stock is 24.79%. What is today's price of the stock? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

Apple, Inc. just paid a dividend of $2.28 a share. Dividends are expected to grow at...

Apple, Inc. just paid a dividend of $2.28 a share. Dividends are expected to grow at a rate of 12% per year for the next three years and then at a rate of 3.5% thereafter. If your required rate of return is 9%, what is the most that you should be willing to pay for a share of Apple stock today?

ABC, Inc. just paid a dividend of $2.50 per share. The dividends are expected to grow...

ABC, Inc. just paid a dividend of $2.50 per share. The dividends are expected to grow for the next 3 years at 8% per year, then grow at 3% per year forever. The required rate of return for ABC stock is 12% per year. a) What should the market price of ABC stock be? b) What should the ex-dividend stock price of ABC be in year 2? c) If you purchased the share of ABC at time 2, at the...

A stock just paid a dividend this morning of $1.30. Dividends are expected to grow at...

A stock just paid a dividend this morning of $1.30. Dividends are expected to grow at 14.00% for the next two years. After year 2, dividends are expected to grow at 8.06 % for the following three years. At that point, dividends are expected to grow at a rate of 6.00% forever. If investors require a return of 15.00% to own the stock, what is its intrinsic value?

AT&T just paid a $5 dividend, dividends are expected to grow at a 10% rate for...

AT&T just paid a $5 dividend, dividends are expected to grow at a 10% rate for the next three years and at a 5% rate after that. What is the value of the stock if investors require a 13% return to purchase the stock?

The Apple just paid a $0.8 quarterly dividend. The dividends are expected to grow at 20%...

The Apple just paid a $0.8 quarterly dividend. The dividends are expected to grow at 20% per year for the next 3 years. After that, the growth rate is expected to go down to the industry average of 8% per year and stay at this level forever. The required rate of return on Apple is 15% per annum. 1.Draw the time line, showing dividends of Apple. 2.Find the price of Apple stock. 3.Find the value of its growth opportunities (PVGO)....

The ABC COmpany just paid a $0.8 quarterly dividend. The dividends are expected to grow at...

The ABC COmpany just paid a $0.8 quarterly dividend. The dividends are expected to grow at 20% per year for the next 3 years. After that, the growth rate is expected to go down to the industry average of 8% per year and stay at this level forever. The required rate of return on ABC is 15% per annum. 1)Draw the time line, showing dividends of ABC. 2)Find the price of ABC stock. 3)Find the value of its growth opportunities...

Belmort Co. just paid a dividend of $2.75. Future dividends are expected to grow by 2.5%...

Belmort Co. just paid a dividend of $2.75. Future dividends are expected to grow by 2.5% per year. If the required return is 8.8%, then what do you expect the price of the stock to be in 3 years? (NOTE: Round your answer to the nearest cent)

1. Membo just paid a dividend of $2.2 per share. Dividends are expected to grow at...

1. Membo just paid a dividend of $2.2 per share. Dividends are expected to grow at 7%, 6%, and 4% for the next three years respectively. After that the dividends are expected to grow at a constant rate of 3% indefinitely. Stockholders require a return of 8 percent to invest in Membo’s common stock. Compute the value of Membo’s common stock today.

Subjects