Individual_work_2

Gordon Growth Company is expected to pay a dividend of $4 next period and dividends are expected to grow at 6% per year. The required return is 16%. What is the price expected to be in year 4? Answer a. $41.6 b. $50.50 c. $40 d. $10

pls answer multi-choice question asap. working not needed

The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20 percent next year and then decreasing the growth rate to a constant 5 percent per year. The company just paid its annual dividend in the amount of $1 per share. What is the current value of a share if the required rate of return is 14 percent? a. 13.28 b. 13.42 c. 13.33 d. 13.19 e. 13.24

3. A rapidly growing firm is currently paying a dividend of $2.95. The dividend growth rate is expected to be 8% for the next 3 years, 6% for the following 2 years, and 4% annually thereafter. The expected return on the market is 10%, the risk-free rate is 5% and the firm's Beta is 1.20. MULTIPLE GROWTH RATE SCENARIOS EXERCISE 6 CHAPTER 3 a. Calculate the estimated price (intrinsic value) for a share of this firm's stock. b. Use Goal Seek to determine what the current dividend would need to be to yield an estimated price (intrinsic value) of $70.

Critically discuss five (5) benefits of financial management to a small computer firm. Never Say Die Ltd has been growing at a phenomenal rate of 20% per year because of its rapid extension and explosive sales. Analysts believe that this growth rate will last for three years and then drop to 5% per annum. If the growth rate then remains at 5% indefinitely, what is the value of Never Say Die Ltd shares? If the dividend paid last year per share was GH₵ 12 and the cost of capital is 15%. Pure Juice Ltd sold bonds to the public five years ago to finance its operation. The bond was recently quoted at 89% of face value. The bond has a total face value of GH₵ 8.5 million and it’s currently priced to yield 9%. Pure Juice Ltd shares currently sell for GH₵ 14 per share. Fifty-three (53%) of Pure Juice Ltd 3.2 million shares are outstanding. To raise additional capital, Pure Juice Ltd issued 500 preference stock that paid GH₵ 6.5 annually per share and sold for GH₵ 95 per share. Treasury bills…

Gordon Growth Company is expected to pay a dividend of $4 next period and dividends are expected to grow at 6% per year. The required return is 16%. What is the price expected to be in year 4? a. $40 b. $10 c. $41.6 d. $50.50

Bha

the company will earn $3 per share next year and should be able to pay 25% as dividend. the company is expected to growth at 7% for 5 years, and then frowth at 5% in the long term. cost of equity of 12%. what is the present value of growth opportunity for this company?   a. 5.34   b.-5.34   c.13.41   d.-13.41

Growing Real Fast Company (GRF) is expected to have a 25 percent growth rate for the next four years (effecting D1, D2, D3, and D4).  Beginning in year five, the growth rate is expected to drop to 7 percent per year and last indefinitely.  If GRF just paid a $2.00 dividend and the appropriate discount rate is 15 percent, then what is the value of a share of GRE?

Question 2. a. Critically discuss five (5) benefits of financial management to a small computer firm. b. Never Say Die Ltd has been growing at a phenomenal rate of 20% per year because of its rapid extension and explosive sales. Analysts believe that this growth rate will last for three years and then drop to 5% per annum. If the growth rate then remains at 5% indefinitely, what is the value of Never Say Die Ltd shares? If the dividend paid last year per share was GHC 12 and the cost of capital is 15%.

Full steps thanks

Company Z earnings and dividends per share will grow indefinitely by 4.1% a year if next year's dividend is $9.0. The market capitalization rate is 13.9%. If Company Z were to distribute all its earnings, it could maintain a level dividend stream of $11.3 a share. How much is the market actually paying per share for growth opportunities?   A. -11.6 B. 33.8 C. 15.0 D. 10.5

12.  Trend-line Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $5 per share.   a. If the market expects a 10% rate of return on Trend-line, at what price must it be selling?  b. If Trend-line's earnings per share will be $8, what part of Trend-line's value is due to assets in place, and what part to growth opportunities?

Given that the NPV per share of the reinvestment of the retained earnings next year for a firm is $2.50. Assuming the growth of the NPV is constant at 5% each year, with the required return rate of 12%, what is the estimated Present Value of Growth Opportunity (PVGO)? a. $35.71 b. $59.23 c. $46.75 d. $24.56

Assume that the first 5 years is the first stage and, years thereafter is the second stage of growth.

10. Company Z's earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year's dividend is $10 and the market capitalization rate is 8%. If company Z were to distribute all its earnings, it could maintain a level dividend stream of $15 a share(EPS=15). How much is the market actually paying per share for growth opportunities? (a) $122.90 (b) $137.55 (c) $145.83 (d) $157.44

Answer the multiple-choice question below: 1. Beta Budget Brooms will pay a big $2 dividend next year on its common stock, which is currently selling at $50 per share. What is the market's required return on this investment if the dividend is expected to grow at 5% forever? Select one: a. 7% b. 4% c. 5% d. 9%

INV3 P6a You are interested in determining the intrinsic value of Hoffman Inc. Your analysis shows that the firm’s growth rate will drop from its current pace by 20% each of the next two years, and then you estimate that dividends will continue to grow at the year 2 rate, with the same dividend policy in place, indefinitely. Lastly, your estimate of the required return on the firm’s equity is 12%. Hoffman’s recently published annual report shows the following financial relationships: Assets = 1.4 x Equity Current Assets = 1.7 x Current Liabilities Sales = 1.5 x Assets Net Income = 8% x Sales Dividends = 30% x Net Income Earnings per share (Basic) = $0.80 per share Determine the growth rate of the company for the prior and for each of the next two years.

Accounting solve the problem

Company A is a worldwide delivery company that is expected to generate a dividend (per share) of $1.40 one year from now (i.e. at t=1). You are expecting that on average Company A's dividends will grow at 5% each year after that into the indefinite future. Assume for simplicity that all dividends are paid at the end of each year. Suppose that the appropriate discount rate for these dividends is 10%.   a. What is the current stock price for Company A? Assume that any dividend at t=0 has already been paid out. b. What do you expect the stock price of Company A to be next year (i.e. at t=1) immediately after the dividend has been paid out? c. What is the expected return for holding the stock of Company A over the year ahead? Hint: Find the IRR on the expected cash flows from buying and holding the stock for one year. The cash flows should include the purchase and sale of the stock as well as the dividend you will receive

Manshukh

Web Cites Research projects a rate of return of 20% on new projects. Management plans to plow back 30% of all earnings into the firm. Earnings this year will be $2 per share, and investors expect a 12% rate of return on the stock. a. What is the sustainable growth rate? (Round your answer to 2 decimal places.) Sustainable growth rate Stock price b. What is the stock price? (Round your answer to the nearest cent.) % Present value of growth opportunities ▸ c. What is the present value of growth opportunities? (Do not round Intermediate calculations. Round your answer to the nearest cent.) P/E ratio d. What is the P/E ratio? (Do not round Intermediate calculations. Round your answer to 3 decimal places.)

Need help with this accounting question solution