Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $2 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year (in which dividends are $4 per share), dividend growth is expected to settle down to a more moderate long-term growth rate of 6%. If the firm's investors expect to earn a return of 14% on this stock, what must be its price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Current price
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- Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $4 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year (in which dividends are $6 per share), dividend growth is expected to settle down to a more moderate long- term growth rate of 6%. If the firm's investors expect to earn a return of 16% on this stock, what must be its price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Current pricePhoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $1 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year (in which dividends are $3 per share), dividend growth is expected to settle down to a more moderate long- term growth rate of 8%. If the firm's investors expect to earn a return Note: Do not round intermediate calculations. Round your answer to 2 decimal of 20% on this stock, what must be its price? places.Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $2 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year (in which dividends are $4 per share), dividend growth is expected to settle down to a more moderate long-term growth rate of 5%. If the firm’s investors expect to earn a return of 15% on this stock, what must be its price? Current price = ???
- Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $2 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year (in which dividends are $4 per share), dividend growth is expected to settle down to a more moderate long-term growth rate of 5%. If the firm’s investors expect to earn a return of 15% on this stock, what must be its price?Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $2 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year (in which dividends are $4 per share), dividend growth is expected to settle down to a more moderate long- term growth rate of 5%. If the firm's investors expect to earn a return of 12% on this stock, what must be its price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Current priceTrinid Co. pulled off a miraculous recovery. Four years ago, it was near bankruptcy. Today, it announced a GH₵ 1 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by GH₵ 1 a year for another 2 years. After the third year, dividend growth is expected to settle down to a more moderate long-term growth rate of 6%. If the firm’s investors expect to earn a return of 14% on this stock, what must be its price?
- Phoenix Industries has pulled off a miraculous recovery. Four years ago, it was near bankruptcy. Today, it announced a $1 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $2 a year for another 3 years. After the fourth year, dividend growth is expected to settle down to a more moderate long-term growth rate of 5 percent. If the firm’s investors expect to earn a return of 15 percent on this stock, what must be its price?Sawchuck Consulting has been profitable for the last 5 years, but it has never paid a dividend. Management has indicated that it plans to pay a $0.25 dividend 3 years from today, then to increase it at a relatively rapid rate for 2 years, and then to increase it at a constant rate of 8.00% thereafter. Management's forecast of the future dividend stream, along with the forecasted growth rates, is shown below. Assuming a required return of 11.00%, what is your estimate of the stock's current value? Year 0 1 2 3 4 5 6 7 Growth rate NA NA NA NA 50% 25% 8.00% 8.00% Dividends $0.000 $0.000 $0.000 $0.25 $0.38 $0.48 $0.52 $0.56 Use the rounded values of dividends (as given in the table above) for your subsequent calculations. Select the correct answer. a. $-20.32 b. $42.32 c. $47.54 d. $11.00 e. $37.10BBP, Inc., has experienced a recent resurgence in business as it has gained new national identity. Management is forecasting rapid growth over the next 4 years (annual rate of 15%). After that, it is expected that the firm will revert to its historical growth rate of 2% annually. The last dividend paid was $1.50 per share, and the required return is 10%. What is the current price per share, assuming equilibrium?
- Analysts expect MC, Co. to maintain a dividend payout ratio of 35% and enjoy an expected growth rate of 12% per year for the next 5 years. After the fifth year, all earnings will be paid out as dividends. The required rate of return on MC, Co equity is 8%. (Solve part b) a. Given that the last dividend paid was $0.5 and the current market price of the stock is $15, what growth rate does the market expect for MC, Co? b. At what price would the analysts value the stock under their own expectations?ACME Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect ACME to begin paying dividends, beginning with a dividend of $2.50 coming 3 years from today. The dividend will grow rapidly - at a rate of 25% per year - during Years 4 and 5, but after Year 5, growth be a constant 5% per year. If the required return on ACME is 12%, what is the capital gains yield for the first year? 5% 12% 5.5% 0% 7%Conroy Consulting Corporation (CCC) has a current dividend of Do = $2.40. Shareholders require a 10% rate of return. Although the dividend has been growing at a rate of 30% per year in recent years, this growth rate is expected to last only for another 2 years (90,1 = 91,2 = 30 %). After Year 2, the growth rate will stabilize at gL = 5%. a. What is CCC's stock worth today? Do not round intermediate calculations. Round your answer to the nearest cent. $ X 0 b. What is the expected stock price at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. What is the Year 1 expected (1) dividend yield, (2) capital gains yield, and (3) total return? Do not round intermediate calculations. Round your answers to two decimal places. Dividend yield: Capital gains yield: % Total return: d. What is its expected dividend yield for the second year? The expected capital gains yield? The expected total return? Do not round intermediate calculations. Round your…