American graphics just got paid a dividend of $3.00. Their dividends will grow at 25% for the next 2 years and then 30% for the next year. After that the dividend will grow at 4% forever. Assuming a 13% cost of equity , the current stock price should be what?

Q: Dallas Home Supply paid an annual dividend of $2.40 a share last year. Yesterday, the firm announced…

A: Dividend paid last year (D0) is $2.40 Dividend in Year 1 (D1) = $2.40*(1+10%) = $2.64 Dividend in…

Q: synovec company is growing quickly. dividends are expected to grow at a rate of 23 percent for the…

A: Growth rate of next 3 years = 23% Growth rate after 3 years = 5% Required return = 10% Current…

Q: Topstone Industries is expected to pay a dividend of $2.10 per share in one year. This dividend,…

A: Cost of equity Ke=D1MP+g Ke=Cost of equity D1=Expected dividend per share at the end of the year…

Q: Zebra is a new firm in a rapidly growing industry. the company is planning on increasing its annual…

A: Given: Dividend = 1 per share Growth rate = 0.11 Constant growth rate = 0.03 Required rate of return…

Q: IBM expects to pay a dividend of $6 next year and expects these dividends to grow at 3.92% a year.…

A: Cost of equity by dividend growth model: Cost of equity = D1/P0 + g D1 is expected dividend P0 is…

Q: Little Oil has outstanding 1 million shares with a total market value of $27 million. The firm is…

A: a) Total market capitalization = $27 million, Number of shares issued = 1 million Price per share =…

Q: CEPS Group just paid an annual dividend of OMR 1.45 per share. Today, the company announced that…

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

Q: The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on…

A: Given: Year 1 to 4 growth rate = 21% Recent dividend = $2.80 Constant growth rate = 5% Required…

Q: Old Nova Inc. just paid its dividend of €5 per share yesterday, which is expected to grow by 1.5%…

A: Value of stock can be found by the present value of dividend and present value of growth of…

Q: CX Enterprises has the following expected dividends: $1.04 in one year, $1.18 in two years, and…

A: Cost of capital = 11.7% Dividend in year 3 = $ 1.33 Growth rate after year 3 = 4%   As per formula…

Q: A7X Corp. Just paid a dividend of $1.45 per share. The dividends are expected to grow at 40 percent…

A: The Present value of the Dividends Payment will be equivalent to the value of the Price today after…

Q: Sunland Inc.’s common shares currently sell for $35 each. The firm’s management believes that its…

A: Given information: Shares price (P) : $35 (As it is the market price) Dividend paid (D0): $2 Growth…

Q: BM expects to pay a dividend of $8 next year and expects these dividends to grow at 3.15% a year.…

A: IBM Share Price = Dividend Next Year / (Cost of Equity - Growth Rate)

Q: Nu-Tek, Inc. is expecting a period of intense growth so have decided to retain more of their…

A: Data given: Dividend paid last year = $1.80 per share Annual divided to reduce for next 3 years =…

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: Storico Co. just paid a dividend of $1.45 per share. The company will increase its dividend by 24…

A: D0 = $1.45;Year1 growth rate = g1 = 24%;Year 2 growth rate, g2 = g1 - 6% = 24% - 6% = 18%Year 3…

Q: Sunland Inc.’s common shares currently sell for $35 each. The firm’s management believes that its…

A: The cost of equity is the return an investor requires by investing in the equity shares of 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: CX Enterprises has the following expected dividends: $1.11 in one year, $1.19 in two years, and…

A: Here we will use the dividend discount model. As per the dividend discount model the price of stock…

Q: Storico Co. just paid a dividend of $2.65 per share. The company will increase itsdividend by 20…

A: Calculation of Price of Stock Today:Excel Spreadsheet:

Q: Miller Corporation just paid a dividend of $1.25 a share (that is, D0=$1.25). The dividend is…

A: Given information in question Current dividend = $1.25 Growth rate = 10% for first 3 year and 6%…

Q: Last year Artworks, Inc. paid a dividend of $1.60. You anticipate that the company’s growth rate is…

A: Here, concept of Dividend growth model is to be used. It is a stock valuation method which is used…

Q: CEPS Group just paid an annual dividend of OMR 3.25 per share. Today, the company announced that…

A:

Q: The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on…

A: Explanation : We can Calculate the Share Price with the help of Dividend paid by company in future…

Q: City Cement Company just paid a dividend of SAR2 per share. The dividend is expected to grow at a…

A: Given: Current dividend = 2 Growth rate = 19% Constant growth rate = 4% Cost of equity = 17%

Q: Wildhorse Corp. is a fast-growing company whose management expects it to grow at a rate of 30…

A: The question is to find the dividend amount at different future time intervals with the given growth…

Q: Shatin Intl. has 10.3 million​ shares, an equity cost of capital of 12.6% and is expected to pay a…

A: Total Stock Value = (Future value of total dividends + repurchasing of stocks) / equity cost of…

Q: Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain…

A: The question is based on the concept of Security Valuation

Q: PIN Ltd is a firm that has been underperforming for many years and has just had a change in…

A: The constant growth model, often known as the Gordon Growth Model, is a method of stock valuation.It…

Q: You are a financial manager for Shah Corporation. The firm is facing financing issues because of the…

A: Dividend paid last year is $0.40 Degrowth rate in dividends for 5 years is 1.05% Contant dividend…

Q: Sorenson Systems, Inc. is expected to pay a dividend of $3.30 at year end (D1), the dividend is…

A: Wacc is the weighted average cost of capital

Q: nts company is expected to pay dividends that will grow at a 21% rate from year 1 to year 4, with…

A: Current intrinsic price of the stock is the discounted value of the future cashlows arising from…

Q: Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain…

A: Working note:

Q: A7X Corp. just paid a dividend of $2.00 per share. The dividends are expected to grow at 23 percent…

A: Formulas:

Q: Impossible Corp, just paid a dividend of $1.93 per share. The dividends are expected to grow at 24%…

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

Q: Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain…

A: The stock value for current date is ascertained using the DDM (dividend-discount model) where each…

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: The SkyLink Corporation just paid a dividend of $2.75 to its that it expects the dividends to grow…

A: Dividend discount model It is used to value a stock. The sum of the present value of all future…

Q: The Merriweather Co. just announced that it will pay a dividend next year of $1.60. The company will…

A: Value of the share is present value of future cash flows discounted at required rate

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: • Fintech company just paid a dividend of $3.00 per share. The dividends are expected to grow at a…

A: Using Dividend Discount Model,

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: Storico Co just paid a dividend of $315 per share. The company will increase its dividend by 20…

A: Dividend at 0th time, D0 = 3.15/share Dividend for next year, D1  =3.15*(1+20%) =3.78 Dividend for…

Q: ATX Corp. just paid a dividend of $1.20 per share. The dividends are expected to grow at 30 percent…

A: This question relates to the non-linear growth model of dividends. We can compute the stock price by…

Q: Antiques "R" Us is a mature manufacturing firm. The company just paid a dividend of $11.30, but…

A: The price of a share today is the intrinsic value of share which can be determined by discounted…

Q: XY is a new firm in a rapidly growing industry. The company is planning on increasing its annual…

A: We need to use dividend discount model to calculate price of stock. Stock price =present value of…