Assume ZYX stock generated earnings of $1.75 per share this year. What should the stock price be if interest rate is 6% and dividends are expected to grow by 2% a year? Assume a payout ratio of 40%.

Q: Sportman company uses a required expected return of 12 percent. because the dividend expected to be…

A: Required return (r) = 12% Growth rate (g) = 6% Dividend in two years (d2) = $2.12

Q: Boehm Incorporated is expected to pay a $1.50 per share dividend at the endof this year (i.e., D1 =…

A: Given that;The dividend at the end of this year, (that is, D1) is $1.50Dividend growth rate is 6%The…

Q: During the next 12 months, Crown, Inc. plans to pay dividends of $1.20 per share. Currently, its…

A: The conceptual formula used is: Note: If the information related to tax is not given then the cost…

Q: ALPHO Inc. has paid annual dividends of $1.25 and $1.62, over the past two years. Dividends in the…

A: The current price of the stock is the present value of the share, based on the future expected…

Q: Grizzlies Inc. expects to pay $3.00 dividend on its common stock at the end of the year. The…

A: Using dividend discount model

Q: The Data General Company is expected to pay an annual dividend of $2.53 at the end of the year.…

A: Computation of required rate of return:Required rate of return is 15.81%.Excel spread sheet:

Q: Boehm Incorporated is expected to pay a $1.50 per share dividend at the end of this year (i.e., D1 =…

A: Dividend (D1)=1.50 Grow rate (g)= 7% Required return (Ke)= 15%

Q: Albright Motors is expected to pay a year- end dividend of $3.00 a share (D1 = $3.00). The stock…

A: In the given question we need to compute the constant growth rate (g) applying dividend growth…

Q: A business’s ordinary shares are currently trading at £2.00 (ex dividend) each in the capital…

A: Given the following information: Price of shares: $2 per share Next year's dividend: $0.14 per…

Q: The current annual dividend on a share of Amazon is $5.00 and dividends are expected to grow at 4%…

A: Intrinsic Value = Expected Dividend / ( Required Rate - Growth Rate )   Where Expected Dividend =…

Q: Trent Brothers is expected to pay a $3.80 per share dividend at the end of the year (i.e., D1 =…

A:

Q: A business’s ordinary shares are currently trading at £4.00 (ex dividend) each in the capital…

A: Given the following information: Price of shares: $4 per share Next year's dividend: $0.22 per…

Q: You expect a share of stock to pay dividends of $3 in one year. After that dividends are expected to…

A: Answer Expected EPS = $3 Growth rate 2nd and 3rd year = 10%  After 3rd year Growth rate 6% Required…

Q: Perry Motors' common stock just paid its annual dividend of ¢1.80 per share. The required return on…

A: The stock price can be calculated by the formula of dividend discount model given by P0 = D0×1+gr-g…

Q: a. MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming year’s earnings are…

A: ROE=16% Plow back ratio(b) = 50% Earnings per share(EPS) = 2 Market capitalization rate = 12%

Q: ABC common stock is expected to have extraordinary growth in earnings and dividends of 26% per year…

A: Stock Price = sum of ( Present Value of all dividends )

Q: ABC common stock is expected to have extraordinary growth in earnings and dividends of 22% per year…

A: Current dividend = $4 Growth rate for 2 years = 22% Growth rate after 2 years = 3% Required rate of…

Q: Cox Footwear pays a constant annual dividend. Last year, the dividend yield was 2.5 percent when the…

A: Given information in question Last year dividend yield         =          2.5% Last year stock price…

Q: McCracken​ Roofing, Inc., common stock paid a dividend of ​$1.34 per share last year. The company…

A: The required rate of return can be calculated as per the dividend discount model.

Q: Ewald Company is experiencing rapid growth. Earnings and dividends are expected to grow at a rate of…

A: Given data; Growth rate at year 1(g1) = 11% growth rate at year 2 (g2) = 11% growth rate  at year 3…

Q: A common stock has a required rate of return of 10.25%, and it sells for ₱57.50 per share. The…

A: Required return (r) = 10.25% Share price (P0) = P 57.50 Growth rate (g) = 6%

Q: Consider the valuation of a share of common stock that paid a $2 dividend at the end of last year…

A: Dividend discount model refers to a stock valuation model which is used by the company for…

Q: resnan Brothers is expected to pay a $1.30 per share dividend at the end of the year (i.e., D1 =…

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

Q: A company has a return on equity of 32 percent and plowback ratio of 50 percent. If the earnings of…

A: The Stock price is the current price of the share that is available in the stock market.

Q: The market capitalization rate on the stock of Aberdeen Wholesale Company is 10%. Its expected ROE…

A: Constant growth model is also regarded as Gordon Growth model which is used to determine the stock…

Q: A. HYZEL Corporation, a domestic corporation, is expected to distribute P1.25 cash dividends at the…

A: The value of a share can be computed using the dividend discount model which assumes that the share…

Q: Shell is experiencing rapid growth. Earnings and dividends are expected to grow at a rate of 15%…

A: The last dividend = $1.15 Growth Rate at year 1 = 15% Growth Rate at year 2 = 15% Growth Rate at…

Q: A stock is expected to pay dividends of $1.45 per share in Year 1 and $1.68 per share in Year 2.…

A: The stock price is the current market value of the stock, which depends upon the required rate of…

Q: Wald Inc.'s stock has a required rate of return of 10 and it sells for 40 per share. Wald's dividend…

A: In the given problem we are required to compute the expected year end dividend (D1) using Dividend…

Q: Egypt company expected to pay dividend next year of $2.70 per share, and dividends are expected to…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: Consider the stock of Davidson Company that will pay an annual dividend of 2 in the coming year. The…

A: An organization's total capital is bifurcated into many units. Each unit represents ownership in the…

Q: Lucus Laboratories' last dividend was $1.50.  Its current equilibriuem stock price is $15.75 and is…

A: 1.Dividend yield can be calculated by using this formula          Dividend yield =D0(1+g)/P0…

Q: A company has stock which costs $42.25 per share and pays a dividend of $2.90 per share this year.…

A: We require to calculate the annual growth rate of dividends from the following details: Stock price…

Q: IBRA company has an expected dividend next year of $5.60 per share, a growth rate of the dividends…

A: The price at which the stock is traded in the market is referred to as the value of the stock,…

Q: An issue of common stock currently sells for $60 per share and expected to pay $4 dividend per share…

A: Given the following information: Current price of stock: $60 per share Estimated dividends for the…

Q: A financial analyst estimates that the current risk-free rate for NN company is 6.25 percent, the…

A: Gordon growth model provides the current price of a share if it has a constant growth till infinity

Q: Last year, Big W Company reported earnings per share of $2.50 when its stock was selling for$50.00.…

A: P/E ratio = Current market price of share / Earnings per share.

Q: A stock is expected to pay dividends of $1.45 per share in Year 1 and $1.68 per share in Year 2.…

A: current value of the stock can be calculated using multi stage dividend discount method Share value…

Q: Financial analysts forecast Safeco Corp.’s (SAF) growth rate for the future to be 10 percent.…

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

Q: Perry Motors’ common stock just paid its annual dividend of ¢1.80 per share. The required return on…

A: We need to use constant growth model to calculate stock price under first two assumptions Stock…

Q: Suppose Kaspi Bank is trading share at 25$ today. The company pays dividend of 0.25. The analysts…

A: An expected return is referred as the profit or loss, where an investor used to anticipate on…

Q: Suppose you bought 150 shares of stock at an initial price of $47 per share. The stock paid a…

A: Capital Gain Yield = Year End Price - Initial PriceInitial Pricex100 Dividend Yield = Dividend per…

Q: the investor's required rate of return is 15 percent, the expected level of earnings at the end of…

A: Price of equity can be determined by the dividend discount model and P/E ratio method.