Question

In: Finance

Miles Hardware has an annual cash dividend policy that raises the dividend each year by 12​%....

Miles Hardware has an annual cash dividend policy that raises the dividend each year by 12​%. Last​ year's dividend, Div0, was $1.50 per share. Investors want a return of 17% on this stock. What is the​ stock's price if

a. the company will be in business for 5 years and not have a liquidating​ dividend? $________ (Round to the nearest​ cent.)

b. the company will be in business for 15 years and not have a liquidating​ dividend? $________ (Round to the nearest​ cent.)

c. the company will be in business for 30 years and not have a liquidating​ dividend? $________ (Round to the nearest​ cent.)

d. the company will be in business for 40 years and not have a liquidating​ dividend? $________ (Round to the nearest​ cent.)

e. the company will be in business for 70 years and not have a liquidating​ dividend? $________ (Round to the nearest​ cent.)

f. the company will be in business​ forever? $________ (Round to the nearest​ cent.)

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Miles Hardware has an annual cash dividend policy that raises the dividend each year by 12​%....
Miles Hardware has an annual cash dividend policy that raises the dividend each year by 12​%. Last​ year's dividend, Div0​, was $1.70 per share. Investors want a return of 16​% on this stock. What is the​ stock's price if a.the company will be in business for 10 years and not have a liquidating​ dividend? b.the company will be in business for 20 years and not have a liquidating​ dividend? c.the company will be in business for 25 years and not...
Miles Hardware has an annual cash dividend policy that raises the dividend each year by 10​%....
Miles Hardware has an annual cash dividend policy that raises the dividend each year by 10​%. Last​ year's dividend, Div 0​, was $ 1.50 per share. Investors want a return of 18​% on this stock. What is the​ stock's price if a.  the company will be in business for 10 years and not have a liquidating​ dividend? b.  the company will be in business for 20 years and not have a liquidating​ dividend? c.  the company will be in business...
Miles Hardware has an annual cash dividend policy that raises the dividend each year by 11​%....
Miles Hardware has an annual cash dividend policy that raises the dividend each year by 11​%. Last​ year's dividend, Div0​, was $1.50 per share. Investors want a return of 17​% on this stock. What is the​ stock's price if a. the company will be in business for 5 years and not have a liquidating​ dividend? b. the company will be in business for 15 years and not have a liquidating​ dividend? c. the company will be in business for 30...
MMM Inc. has an annual cash dividend policy that raises the dividend each year by 14.00​%....
MMM Inc. has an annual cash dividend policy that raises the dividend each year by 14.00​%. Last​ year's dividend was​ $2.50per share. Investors want a 17​% return on this stock. What is the price today of this stock if the company will be in business for five years and not have a liquidating dividend​ (there is no selling price​ - stock simply cease to exist with no value​ then)? The price of this stock today is ​$____
MMM Inc. has an annual cash dividend policy that raises the dividend each year by 14.00​%....
MMM Inc. has an annual cash dividend policy that raises the dividend each year by 14.00​%. Last​ year's dividend was​ $2.50per share. Investors want a 17​% return on this stock. What is the price today of this stock if the company will be in business for five years and not have a liquidating dividend​ (there is no selling price​ - stock simply cease to exist with no value​ then)? The price of this stock today is ​$____
King Waterbeds has an annual cash dividend policy that raises the dividend each year by 5...
King Waterbeds has an annual cash dividend policy that raises the dividend each year by 5 %. The most recent dividend, Div 0 , was $ 0.35 per share. What is the stock's price if a. an investor wants a return of 7 %? b. an investor wants a return of 10 %? c. an investor wants a return of 11 %? d. an investor wants a return of 14 %? e. an investor wants a return of 18 %?
King Waterbeds has an annual cash dividend policy that raises the dividend each year by 44​%....
King Waterbeds has an annual cash dividend policy that raises the dividend each year by 44​%. The most recent​ dividend, Div0​, was $0.40 per share. What is the​ stock's price if a. an investor wants a return of 7%? b. an investor wants a return of 10%? c. an investor wants a return of 11%? d. an investor wants a return of 15%? e. an investor wants a return of 19%?
Pfender Guitars has a current annual cash dividend policy of $5.00. The price of the stock...
Pfender Guitars has a current annual cash dividend policy of $5.00. The price of the stock is set to yield a return of 9​%. What is the price of this stock if the dividend will be paid a.  for 10 years and then the company repurchases the stock for $30? b.  for 13 years and then the company repurchases the stock for $30? c.  for 40 years and then the company repurchases the stock for $30​? d.  for 60 years...
Singing Fish Fine Foods has a current annual cash dividend policy of $2.00. The price of...
Singing Fish Fine Foods has a current annual cash dividend policy of $2.00. The price of the stock is set to yield a return of 14%. What is the price of this stock if the dividend will be paid for: A) 12 years? B) 15 years? C) 40 years? D) 50 years? E) 100 years? F) Forever?
Singing Fish Fine Foods has a current annual cash dividend policy of ​$3.50. The price of...
Singing Fish Fine Foods has a current annual cash dividend policy of ​$3.50. The price of the stock is set to yield a return of 12 %. What is the price of this stock if the dividend will be paid a.  for 10 ​years? b.  for 16 ​years? c.  for 42 ​years? d.  for 50 ​years? e.  for 100 ​years? f.  ​forever?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT