constant rate of 4 percent per year. What is the stock price today if the cost of capital is $34.73
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Sh5
Please help me.
Thankyou.
![ABC, Inc. currently pays no dividends. Today, the firm announced that it will pay its first dividend of $1 per share in
four years, then $1.50 in each of the following three years, and the subsequent dividends are expected to grow at a
constant rate of 4 percent per year. What is the stock price today if the cost of capital is 10%?
$34.73
$19.40
$31.50
$16.57](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b0b81d1-4003-45db-98a1-a693b0b85df5%2F14b8bf85-be20-44a0-9101-73eeb24d073f%2Fqtpem7s_processed.jpeg&w=3840&q=75)
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- A young company currently does not pay a dividend. The company retains all its earnings to finance its growth. However, 10 years from now the company is expected to start paying a $1.50 dividend. According to analysts, the dividend should then grow by 5% annually forever. If the required return on the share investment is 15%, what should be the company's share price five years from today? a. $16.28 b. $8.57 c. $11.50 d. $6.24The RLX Company just paid a dividend of $315 por share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely Assume investors require a return of 11 percent on this stock. a. What is the current price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What will the price be in three years and in fifteen years? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.. 32.16. a. Current price b. Price in three years Price in fifteen yearsDue to the current global economic conditions, Canary Ltd stopped its dividend payments. Dividends of $3.50 are expected to re-commence in 6 years and are expected to increase at a rate of 5% per year thereafter. If the required rate of return is 11%, what is the current value of the firm’s shares?
- New Gadgets, Incorporated, currently pays no dividend but is expected to pay its first annual dividend of $4.85 per share exactly 6 years from today. After that, the dividends are expected to grow at 3.4 percent forever. If the required return is 11.2 percent, what is the price of the stock today?NTT Corp is expected to pay a $2.80 annual dividend to its common shareholders next year. Analysts expect these dividends to grow indefinitely at a 6.5 percent annual rate. If the required rate of return on the common stock is 10.8 percent, what is the intrinsic value of the common stock? a. $56.28 b. $61.44 c. $65.12 d. $69.35Amalgamated Industries currently pays no dividends. It will begin paying dividends in7 years. Its first dividend will be $6.65, and future dividends will grow at 1.12% peryear. If investors require a 6.65% return, what is the current stock price?$71.91$76.63$79.27$84.17$81.72
- Von Bora Corporation (VBC) is expected to pay a $3.00 dividend at the end of this year. If you expect VBC's dividend to grow by 6% per year forever and VBC's equity cost of capital to be 13%, then the value of a share of VBC stock is closest to $15.79 $25.72 $17.14 $42.86WSUFIN Inc. does not expect to grow in the next several years. Its last annual dividend was $3.57 If the required rate of return on similar investments is 7 percent, how much should we pay for the stock today? (Round the answer to two decimal places.) $39.66 $35.42 $32.14 $51.00 none of theseWyatt oil presently pays no dividend. You anticipate Wyatt Oil will begin paying an annual dividend of $0.45 per share two years from today (T-2) and you expect dividends to grow by 3.4% per year thereafter. If Wyatt Oil's cost of equity capital is 11.4%, then the value of one share of Wyatt oil today is closest to: OA. $5.63 OB. $3.55 OC. $5.05 OD. $0.45 OE. $3.95 OF. $4.53 H
- A firm does not currently pay dividends. However, 10 years from today the firm will pay a dividend of $2.00 per share (i.e., the dividend per share at t=10 is equal to $2.00). Thereafter, dividends will grow at 3% per year indefinitely. What price would you pay today for one share of stock if the equity cost of capital is 7%? (Hint: draw a cash flow timeline!) O A. $50.00 O B. $27.20 O C. $46.73 D. $25.42Apocalyptica Corp. pays a constant $28 dividend on its stock. The company will maintain this dividend for the next 10 years and will then cease paying dividends forever. If the required return on this stock is 6 percent, what is the current share price? 280.45 280.00 206.08 216.35 201.96company presently pays no dividend. You anticipate company will pay an annual dividend of $1.00 per share two years from today and you expect dividends to grow by 3% per year thereafter. If company’s equity cost of capital is 14%, then what is a fair value for a share of company today? Enter answer rounded to the nearest cent.
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