Abel, Inc. just paid a dividend of $3.0 per share and you think they will continue to pay $3.0 per year indefinitely.  If the appropriate discount rate is 11%, how much should the price of a share be?  (Answer to the nearest penny.)

Q: The owners of Sitty Inc need a return of 12% pa. The current performance of the firm leads to the…

A: 1 : The 12% return if the share price is 22/share = 22 * 12% = 2.64 That means on investing 22…

Q: Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $9.50 per…

A: In financial markets, it is a method of evaluating the intrinsic value of the stock. It is a…

Q: BC is expected to pay ¢500 dividend per share next year, and then sell for ¢2,000 thereafter. our…

A: Next dividend (D1) = ¢500 Price after one year (P1) = ¢2,000 Discount rate (r) = 28%

Q: NoGrowth Corporation currently pays a dividend of $2.08 per​ year, and it will continue to pay this…

A: Cost of Equity: It is the cost of the company while raising finance by issuing equity. It is…

Q: Gentleman Gym just paid its annual dividend of $3 per share, and it is widely expected that the…

A: Common Stock Valuation is method used to knw the value of the stock. Stock Value can be calculated…

Q: Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $6.75 per…

A: GIVEN, RATE = 13% D0= $6.75 company announce it will increase dividend by $10.50 each year till next…

Q: Kinston Industries just announced that it will cut its dividend from $3.00 to $2.00 and use the…

A: Answer -  Step 1 - Calculation of Cost of Equity -  Stock Price = Dividend / (Cost of Equity -…

Q: .10 percent per year into the foreseeable future and the current price of Ivanhoe’s common shares is…

A: Given information :

Q: Hudson Corporation will pay a dividend of $2.58 per share next year. The company pledges to increase…

A: Formulas: Current price = Expected dividend / (Required return - growth rate)

Q: JRN Enterprises just announced that it plans to cut its dividend from $2.50 to $1.50 per share and…

A: Before Decision: D1 is $2.5 Current Share Price is $25 Growth rate is 4% per year After Decision: D1…

Q: Hudson Corporation will pay a dividend of $2.54 per share next year. The company pledges to increase…

A: Definition: Dividends: This is the amount of cash distributed to stockholders by a company out its…

Q: Corn, Inc., has an odd dividend policy. The company has just paid a dividend of $6 per share and has…

A: Dividend this year D0 was = $6 Dividend in year 1, D1 = $6 + $2 = $8 Dividend in year 2, D2 = $8 +…

Q: HQZ Inc., has just paid a dividend of $4.49 per share and has announced that it will increase the…

A: Present value of all the dividends paid for next 4 years is the price expected to be paid. Dividends…

Q: Hudson Corporation will pay a dividend of $3.10 per share next year. The company pledges to increase…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: Eastern Electric currently pays a dividend of $1.64 per share and sells for $27 a share.   a. If…

A:

Q: Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $11.00 per…

A: Current Share Price can be calculated by adding the present values of future dividends Dividend paid…

Q: ear ago, you have short-sold 4000 shares of Stock Z, which was trading at $150 per share. After a…

A: A short position would be at loss if price rises.

Q: A mature manufacturing firm just paid a dividend of $588 but management expects to reduce the payout…

A: Introudction : Dividend = 5.88 Growth rate reduced = 4.32% required return = 8.46% as per the above…

Q: Rylan Industries is expected to pay a dividend of $5.80 year for the next four years. If the current…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: ow much are you willing to pay for one share of  Group stock if the company just paid an OMR 0.95…

A:

Q: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.6 million and…

A: given, forever dividend = $9.2 million r=13.3% outstanding shares = 4.8 million

Q: Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $5.85 per…

A: Current dividend = $5.85 Future dividends Year Last dividend Dividend for  the period   A…

Q: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.6 million and…

A: Total amount to be spent on dividends and repurchase forever (A) = $9.2 million Cost of capital (r)…

Q: Whitewall Tire Co. just paid an annual dividend of $1.60 on its common shares. If Whitewall is…

A: Formulas: Cost of common stock = (Expected dividend / Price) + Growth rate

Q: How much are you willing to pay today for one share of stock if the company just paid a $1.85 annual…

A: Last dividend = $1.85 Growth rate = 0.06 Required return = 0.14 Stock price = ?

Q: Bucky Inc. has just paid dividend of 10/= per share. The company has announced that it will increase…

A: Value = D1/(1 + r)+ D2/(1 + r ) 2 + D3/ (1 + r)3 + Dn ( 1+ r)n D1  = Dividend for the Next period…

Q: Duke Energy currently pays a dividend of about $1.64 per share and sells for $27 a share. If…

A: The share price is the current market price of the share. It is the price of the share at any…

Q: Assume MIE is a listed company and pays dividends once each year, and it just distributed this…

A: Last dividend = $ 1.30 Growth rate for year 1 = 9% Next dividend (D1) = 1.30*(1+0.09) = $ 1.417…

Q: Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on…

A: Plowback ratio also known as retention ratio is a financial metric that determines the relationship…

Q: the value of a share of​ NoGrowth's stock is closest​ to:

A: Stock refers to the total amount of capital which is raised by the corporations by the issue of…

Q: Maurer, Inc., has an odd dividend policy. The company has just paid a dividend of $6 per share and…

A: Calculation of Price of Share today:The price of share today is $65.75.Excel Spreadsheet:

Q: NoGrowth Corporation currently pays a dividend of $2.00 per​ year, and it will continue to pay this…

A: Cost of Equity: It is the cost of the company while raising finance by issuing equity. It is…

Q: A mature manufacturing firm just paid a dividend of $422 but management expects to reduce the payout…

A: Current price on a stock with a dividend (D0) of $4.22 and required rate of return ( r ) of 9.1% can…

Q: HQZ Inc., has just paid a dividend of $4.9 per share and has announced that it will increase the…

A: INTRODUCTION:  Current Divident = 4.90 Each year increase by = 2.36 Discount rate = 9.43% Current…

Q: Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $9.80, but…

A: Value of share is calculated using dividend discount model  Value = Dividend in year 1/(rate -…

Q: This year, Hope Corporation paid a dividend of $0.50 per share.  The company expect dividends to…

A: Value of share price = [D0 x (1 + g)]/(r - g) D0 = Current dividend g = Growth rate r = required…

Q: XYZ Inc., has an odd dividend policy. The company has just paid a dividend of $11.00 per share and…

A: Present value is calculated by multiplying dividends by the PV factor.

Q: What price should the stock sell at? Assume the discount rate is 20 percent. How would your answer…

A: The constant growth model is a method for valuing the share price of a stock. It calculates the…

Q: If you require a return of 11 percent on your investment, how much will you pay for the company’s…

A: Since its Constant Growth, Below will be the formula to calculate the Stock price today = Dividend…

Q: mpany's last dividend was $1.25, and the directors expect to maintain the historic 4 percent annual…

A: The given problem can be solved using constant dividend growth model.

Q: Anderson​ Motors, Inc. has just set the company dividend policy at ​$0.60 per year. The company…

A: Stock price = Annual dividend for annuity / Rate of return

Q: Our company, which was founded 10 years ago, has allocated 10,000 shares to investors at 1 TL…

A: To determine the current price of one share today, we first need to to determine the growth rate and…

Q: NoGrowth Corporation currently pays a dividend of $1.72 per​ year, and it will continue to pay this…

A: Solution:- Companies pay a part of their earnings to shareholders, which is known as dividend.…

Q: FECORP, will pay a dividend of $5.10 per share next year. The company pledges to increase its…

A: Dividend payable next year =D1=$5.10 Growth rate of dividend = g= 4.2% per year Expected return /…

Q: Home Company paid an annual dividend of RM0.90 per share this year. The company expects that the…

A: The Supernormal Growth Model is the model in which the value of the stock is measured through its…