1.Lohn Corporation is expected to pay the following dividends over the next four years: $17, $15,...

1.Lohn Corporation is expected to pay the following dividends over the next four years: $17, $15, $10, and $5. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 12 percent, what is the current share price?

2. A7X Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 35 percent for the next 9 years and then level off to a growth rate of 9 percent indefinitely.
If the required return is 14 percent, what is the price of the stock today?

Expert Solution

jeff jeffy answered 1 year ago

Lohn Corporation is expected to pay the following dividends over the next four years: $12, $9,...

Lohn Corporation is expected to pay the following dividends over the next four years: $12, $9, $8, and $3.50. Afterwards, the company pledges to maintain a constant 7 percent growth rate in dividends forever. If the required return on the stock is 14 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price $

Lohn Corporation is expected to pay the following dividends over the next four years: $7.48, $3.6,...

Lohn Corporation is expected to pay the following dividends over the next four years: $7.48, $3.6, $6.1, and $6.07. Afterward, the company pledges to maintain a constant 4.95 percent growth rate in dividends forever. If the required return on the stock is 7.06 percent, what is the current share price?

Lohn Corporation is expected to pay the following dividends over the next four years: $9, $7,...

Lohn Corporation is expected to pay the following dividends over the next four years: $9, $7, $3, and $1. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 14 percent, what is the current share price?

Lohn Corporation is expected to pay the following dividends over the next four years: $11, $8,...

Lohn Corporation is expected to pay the following dividends over the next four years: $11, $8, $4, and $2. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever . If the required return on the stock is 13 percent, what is the current share price?

Lohn Corporation is expected to pay the following dividends over the next four years: $16, $12,...

Lohn Corporation is expected to pay the following dividends over the next four years: $16, $12, $9, and $5. Afterward, the company pledges to maintain a constant 7 percent growth rate in dividends forever. If the required return on the stock is 15 percent, what is the current share price? Multiple Choice (A) $75.01 (B) $70.00 (C) $67.64 (D) $66.50 (E) $72.10

Lohn Corporation is expected to pay the following dividends over the next four years: $13, $9,...

Lohn Corporation is expected to pay the following dividends over the next four years: $13, $9, $5, and $2. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 14 percent, what is the current share price? Multiple Choice $37.89 $46.65 $39.74 $38.58 $36.65

1) Far Side Corporation is expected to pay the following dividends over the next four years:...

1) Far Side Corporation is expected to pay the following dividends over the next four years: $14, $10, $8, and $4. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. Required: If the required return on the stock is 12 percent, what is the current share price? 2) Marcel Co. is growing quickly. Dividends are expected to grow at a 25 percent rate for the next 3 years, with the growth rate falling off...

Interfinn Corporation is expected to pay the following dividends over the next four years: $10, $7,...

Interfinn Corporation is expected to pay the following dividends over the next four years: $10, $7, $6, and $2.75. Afterwards, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 13 percent, what is the current share price?

Far Side Corporation is expected to pay the following dividends over the next four years: $9,...

Far Side Corporation is expected to pay the following dividends over the next four years: $9, $5, $2, and $1. Afterward, the company pledges to maintain a constant 3 percent growth rate in dividends forever. Required: If the required return on the stock is 10 percent, what is the current share price? (Do not round your intermediate calculations.)

Far Side Corporation is expected to pay the following dividends over the next four years: $14,...

Far Side Corporation is expected to pay the following dividends over the next four years: $14, $11, $8, and $5. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 13 percent, what is the current share price? (Do not round your intermediate calculations.) options: $69.86 $66.37 $67.30 $71.96 $75.23 Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over...

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