Question
In: Math
The common stock of Textile Mills pays an annual dividend of $1.65 a share. The company...
The common stock of Textile Mills pays an annual dividend of $1.65
a share. The company has promised to maintain a constant dividend
even though economic times are tough. How much are you willing to
pay for one share of this stock if you want to earn a 12 percent
annual return?
Solutions
Expert Solution
assume i am willing to pay x ....so
0.12x=1.65
or x=13.75
milcah answered 2 years agoRelated Solutions
The common stock of Water Town Mills pays a constant annual dividend of $2.25 a share....
The common stock of Water Town Mills pays a constant annual
dividend of $2.25 a share. What is one share of this stock worth at
a discount rate of 16.02 percent?
Weisbro and Sons common stock sells for $21 a share and pays an annual dividend that...
Weisbro and Sons common stock sells for $21 a share and pays an
annual dividend that increases by 5.4 percent annually. The market
rate of return on this stock is 9.4 percent. What is the amount of
the last dividend paid by Weisbro and Sons?
$.74
$1.08
$1.87
$.80
$.89
Unique stores common stock pays a constant annual dividend of $1.75 a share. What is the...
Unique stores common stock pays a constant annual
dividend of $1.75 a share. What is the value of this stock at a
discount rate of 13.25 percent?
a. $12.50
b. $13.33
c. $13.21
d. $12.88
e. $14.18
(Please show steps and you can use a financial
calculator as well).
A zero-growth common stock pays the annual dividend of $ 1.75 per share at the end...
A zero-growth common stock pays the annual dividend of $ 1.75
per share at the end of each year. If the required rate of return
on the common stock is 11.2 %, what is the price per share of the
common stock today?
a. Suppose a company currently pays an annual dividend of $3.20 on its common stock in...
a. Suppose a company currently pays an annual dividend of $3.20
on its common stock in a single annual installment, and management
plans on raising this dividend by 6 percent per year indefinitely.
If the required return on this stock is 12 percent, what is the
current share price?
b. Now suppose the company in (a) actually pays its annual
dividend in equal quarterly installments; thus, the company has
just paid a dividend of $.80 per share, as it has...
XYZ company presently pays a dividend of $ 1.50 per share on its common stock. The...
XYZ company presently pays a dividend of $ 1.50 per share on its
common
stock. The company expects to increase the dividend at a 20% annual
rate the
first four years and at the rate of 13% at the next four years then
the growth on
the dividend at a 7% thereafter. This phased growth patterns is in
keeping with
the expected life cycle of earnings. You are required a 16% return
to invest in
this stock. What value should...
XYZ company presently pays a dividend of $ 1.50 per share on its common stock. The...
XYZ company presently pays a dividend of $ 1.50 per share on its
common
stock. The company expects to increase the dividend at a 20% annual
rate the
first four years and at the rate of 13% at the next four years then
the growth on
the dividend at a 7% thereafter. This phased growth patterns is in
keeping with
the expected life cycle of earnings. You are required a 16% return
to invest in
this stock. What value should...
XYZ company presently pays a dividend of $ 1.50 per share on its common stock. The...
XYZ company presently pays a dividend of $ 1.50 per share on its
common
stock. The company expects to increase the dividend at a 20% annual
rate the
first four years and at the rate of 13% at the next four years then
the growth on
the dividend at a 7% thereafter. This phased growth patterns is in
keeping with
the expected life cycle of earnings. You are required a 16% return
to invest in
this stock. What value should...
XYZ company presently pays a dividend of $ 1.50 per share on its common stock. The...
XYZ company presently pays a dividend of $ 1.50 per share on its
common
stock. The company expects to increase the dividend at a 20% annual
rate the
first four years and at the rate of 13% at the next four years then
the growth on
the dividend at a 7% thereafter. This phased growth patterns is in
keeping with
the expected life cycle of earnings. You are required a 16% return
to invest in
this stock. What value should...
Lina buys a common stock that pays annual dividends. The first dividend of $25 is at...
Lina buys a common stock that pays annual dividends. The first
dividend of $25 is at the end of the third year and each subsequent
annual dividend is $4 greater than the preceding one.
Calculate the price of this stock given an effective annual
interest rate of 4.5 %
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Use the method of reduction of order to find a second independent solution of the given...
- (Annuity payments) Mr. Bills Preston, Esq., purchased a new house for $280,000. He paid $80,000 up...
- When are sellers from online auction sites required to pay income tax? Please provide and discuss...
- A pharmaceutical company has a new drug which relieves headaches. However, there is some indication that...
- Kaizen is a Japanese term for continuous improvement in all aspects of an entity’s performance, at...
- When the following equation is balanced with the smallest integral coefficients, the coefficient of the HCl(g)...
- QCE18-3 How Do Business Processes and Information Systems Relate? Explain how information systems and business processes...
ADVERTISEMENT