In: Finance

The common stock of NCP paid $1.25 in dividends last year. Dividends are expected to grow at an annual rate of 9.10 percent for an indefinite number of years.

a. If NCP's current market price is $27.95 per share, the stock's expected rate of return is____%. (Round to two decimal places.)

b. If your required rate of return is 11.1 percent, the value of the stock would be $ _____. (Round to the nearest cent.)

c. You should (buy or sell) the stock because the expected rate of return is ( less than or greater than) your required rate of return or the value of the stock is ( larger than or smaller than) the current market price.

The common stock of NCP paid $1.35 in dividends last year.
Dividends are expected to grow at an annual rate of 7.90 percent
for an indefinite number of years.
a. If NCP's current market price is $22.93 per share, what is
the stock's expected rate of return?
b. If your required rate of return is 9.9 percent, what is the
value of the stock for you?
c. Should you make the investment?

The common stock of NCP paid ?$1.31 in dividends last year.
Dividends are expected to grow at an annual rate of 7.40 percent
for an indefinite number of years.
a. If your required rate of return is 9.70 percent?, what is the
value of the stock for? you?
b. Should you make the? investment?

(Common stock valuation) The common stock of NCP paid $1.32
in dividends last year. Dividends are expected to grow at an annual
rate of 8.00 percent for an indefinite number of years. a. If your
required rate of return is 10.50 percent, what is the value of the
stock for you? b. Should you make the investment?

Jacobson, Inc. paid $3.00 in dividends to common stockholders
last year. Dividends are expected to grow at sustainable growth
rate for an indefinite number of years. Jacobson has a return on
equity of 30% with dividend payout ratio of 60%.If Jacobson’s stock current market price is $33.60, what is the
stock’s expected rate of return?If your required rate of return is 18 percent, what is the
value of the stock for you?

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?

Mary's Bakery has common stock with a current price of $79 and
paid dividends last year of $2.34. Common stock floatation costs
are $12.65 per share and the growth rate on common stock is 7%. The
firm's preferred stock sells for $109 with a $9.50 dividend per
share and floatation costs of $6.25 per share.
use four decimals places in the calculation.
Calculate the cost of preferred stock
Calculate the cost of common stock
Calculate the cost of retained earnings.

The earnings, dividends, and common stock price of Shelby Inc.
are expected to grow at 3% per year in the future. Shelby's common
stock sells for $21.00 per share, its last dividend was $2.00, and
the company will pay a dividend of $2.06 at the end of the current
year.
Using the discounted cash flow approach, what is its cost of
equity? Round your answer to two decimal places.
%.......
If the firm's beta is 2.1, the risk-free rate is...

Lawrence comp paid $2.00 per share in common stock dividends
last year. The company will allow its dividend to grow at 8 percent
for 7 years, and after that the rate of growth will be 6 percent
forever. What is the value of the stock if the required rate of
return is 10 percent?
the Lawrence company is subject to capital rationing and has a
capital budget of $2,000,000; the firm's cost of capital is 16
percent.
USE EXCEL FORMULAS...

The future earnings,
dividends, and common stock price of Callahan Technologies Inc. are
expected to grow 6% per year. Callahan's common stock currently
sells for $28.75 per share; its last dividend was $1.50; and it
will pay a $1.59 dividend at the end of the current year.
Using the DCF
approach, what is its cost of common equity? Do not round
intermediate calculations. Round your answer to two decimal
places.
%
If the firm's beta is
2.1, the risk-free rate...

The future earnings, dividends, and common stock price of
Callahan Technologies Inc. are expected to grow 3% per year.
Callahan's common stock currently sells for $21.00 per share; its
last dividend was $2.00; and it will pay a $2.06 dividend at the
end of the current year.
Using the DCF approach, what is its cost of common equity?
Round your answer to two decimal places. Do not round your
intermediate calculations.
%
If the firm's beta is 1.70, the risk-free...

ADVERTISEMENT

ADVERTISEMENT

Latest Questions

- Discuss the development and use of lynching as a tool of social order. (History after 1877)
- Balance the following oxidation–reduction equation. The reactions occur in a basic aqueous solution. Cd2++ H 2S → Cd...
- 2003 2004 2005 2006 Cash and Short Term Investments 51.421 58.054 60.651 72.122 Accounts Receivable 12.394...
- Utilize the data below to answer the following question: Ready-to-Drink (RTD) Coffee Market Overall RTD Market...
- An investor buys a 3.8% annual payment bond with 8 years to maturity. The bond is...
- In Shavertown, Pennsylvania, the owner of Wilkes-Barre Bookkeeping LLC was indicted for embezzling over $375,000 of...
- JavaScript is executed all on the client side within the browser. What kind of tasks or...

ADVERTISEMENT