Question

Asked Sep 22, 2019

133 views

Common stock value: Constant growth

Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019, Seagate paid the followingper-share dividends:

Year | Dividend per share |

2019 | $2.51 |

2018 | $2.27 |

2017 | $1.83 |

2016 | $1.16 |

2015 | $1.49 |

Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 19% required rate of return to find the value of Seagate's stock immediately after it paid its 2019 dividend of $2.51.

Step 1

D2015 = 1.49; D2019 = 2.51;

g = the future constant annual dividend growth rate = the historical annual growth rate of Seagate dividends = (D2019...

Tagged in

Q: A ten-year bond, with par value equals $1000, pays 10% annually. If similar bonds are currently yiel...

A: Calculation of market value of bonds: Excel spreadsheet:

Q: a. What will be the monthly payment on a 30-year, $250,000 mortgage loan, where the interest rate is...

A: Calculation of Monthly Payment and Interest Paid on the Loan:Excel Spreadsheet:

Q: Susan Jones has a job as a pharmacist earning $45,000 per year, and she is deciding whether to take ...

A: Part 1:As per the given conditions, the expenses are expected to grow at 3%. The fourth year revenue...

Q: Will recently decided that he’d like to take a trip this upcoming summer. Here’s some more informati...

A: We need to prepare a table showing usage of funds and sources of funds. Usage of funds will tell us ...

Q: Let C be the price of a call option that enables its holder to buy one share of a stock at an exerci...

A: Given that, K is the exercise price, S is stock price at time 0.

Q: A friend of yours contacts you about an illegal payoff scheme to judges she is aware of at the priso...

A: Calculate the maturity period to double the money as follows:MS-Excel --> Formulas --> Financi...

Q: Block, S., Hirt, G., & Danielsen, B. (2017). Foundations of Financial Management. New York, NY: ...

A: Unit sales per month can be compared to production per month and the difference will give us the cha...

Q: Cash flow to stockholders The 2017 balance sheet of kerbers tennis shop, inc., showed $650,000 in th...

A: Calculation of cash flow to stockholders:Hence, the cash flow to stockholders for the year is $170,0...

Q: Last year, K9 WebbWear, Inc. reported an ROE of 22 percent. The firm’s debt ratio was 50 percent, sa...

A: Total assets can be calculated as shown below.