Constant Corp.common stock sells for $21 and pays an annual dividend that increases by 4% per year when the market rate of return is 9%. What is the amount of the last dividend paid by Constant? a. $.81 b. $.84 C. $1.01 d. $1.05 e. $1.26

Q: The common stock of Shepard Auto sells for $47.92 per share. The stock is expected to pay $2.28 per…

A: To calculate the market rate of return we will use following formula   Market rate of return =…

Q: ulie's X-Ray Company paid $2.00 per share in common stock dividends last year. The company's policy…

A: given, D0=$2g1-4=4%g=3%r=8%

Q: Rascal, Inc., has an issue of preferred stock outstanding that pays a $10.2 dividend every year in…

A: In the given question we need to compute the required return on preferred stock.

Q: Simon brothers has perpetual preferred stock outstanding that sells for $21.50 a share and pays a…

A: Solution:- Preferred stock is hybrid form of common shares and bonds. They get a fixed dividend per…

Q: General Distributor’s common stock dividends have been growing at an annual rate of 3.5% per year…

A: What is the current value of a share:- Current value of share    =    $ 33.87 EXPLANATION:- Given…

Q: Jarett & Sons's common stock currently trades at $38.00 a share. It is expected to pay an annual…

A: Given, Current Market Price = $38 D1 = $2.75 Growth rate = 7%

Q: RTF, Inc. common stock sells for $22 a share and pays an annual dividend that increases by 3.8…

A: Dividends are annual yield paid against the capital acquired by issuing equity.

Q: The common stock of Bethel Baked Goods is valued at $8.76 a share. The company increases its…

A: Goods valued = 8.76 Growth rate of dividend = 1.5% Dividend = 0.65 Current Stock Price = Expected…

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

A: Given information :

Q: he common stock of Dayton Repair sells for $41.95 a share. The stock is expected to pay $1.43 per…

A: Formulas that are used:-

Q: CEPS Group paid an OMR 2.75 per share annual dividend this year. Dividends are expected to increase…

A: Annual dividend paid this year (D0) = OMR 2.75 Expected growth rate per year (g) = 4.5% Required…

Q: Farley Inc. has perpetual preferred stock outstanding that sells for $44 a share and pays a dividend…

A: Formula Required rate of return = Annual dividend/Current stock price Where Stock price = $44 Annual…

Q: Jarett & Sons's common stock currently trades at $32.00 a share. It is expected to pay an annual…

A: Cost of equity capital refers to the cost incurred by the firm or an individual in procuring equity…

Q: Dividends for Sepia Ltd are expected to be $0.50 next year. The company retains 25% of its earnings…

A: Expected dividend = $0.50 Retention Ratio = 25%  Rate of return on investment = 15%  Rate of return…

Q: Jarett & Sons's common stock currently trades at $26.00 a share. It is expected to pay an annual…

A: Equity represents ownership in a company. A company issues stock in the market in order to raise…

Q: Roy's Welding common stock sells for $48.96 a share and pays an annual dividend that increases by 2…

A: The question gives the following information:

Q: CEPS Group is going to pay an annual dividend of OMR 4.71 a share on its common stock next year.…

A: Calculate the growth rate as follows: Growth rate = (Closing dividend - Opening dividend)/Opening…

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: Farley Inc. has perpetual preferred stock outstanding that sells for $30 a share and pays a dividend…

A: Required rate of return is the minimum or expected rate of return which is necessary based on the…

Q: U.S Technologies preferred stock sells for $80 and pays $9 each year in dividends. What is the…

A: Preferred stock are defined as the type of the shares, which gives the dividend to the preferred…

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

A: Common stock is an equity instrument issued by a corporation that represents an ownership claim…

Q: Jarett & son's common stock currently trades at $30.00 a share. it is expected to pay an annual…

A: Given: Dividend of next year = $1 Price of the share = $30 Dividend growth rate = 4% = 0.04

Q: Flo's flowers pays an annual dividend that increases by 1.8 percent per year, commands a market rate…

A: Dividend growth method of share valuation can be used to compute the next dividend in this case.

Q: Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.25 next year. The growth…

A: According to the general rule of finance, the value of a financial asset represents a sum of present…

Q: A company pays a current dividend of $1.20 per share of common stock. The annual dividend will…

A: Capital gain means the increase in price of security during the holding period. But if the security…

Q: A Gateway Inc. has an issue of preferred stock that pays $3.40 dividend every year in perpetuity. If…

A: Annual dividend (D) = $3.40 Current price (P0) = $91 Required return (r) = ?   Required return is…

Q: Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.35 next year. The growth…

A: The following formula will be used:

Q: Maytag Company earns $2.30 per share. Today the stock is trading at $43. The company pays an annual…

A: The details are as under  EPS = $ 2.30 per share  MPS = $ 43 per share  DPS = $ 1.30 per Share…

Q: Simon Brothers has perpetual preferred stock outstanding that sells for $68 a share and pays a…

A:

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: Maytag Company earns $2.50 per share. Today the stock is trading at $45. The company pays an annual…

A: price per earning ratio tells the value of a company by dividing market value per share by earning…

Q: Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.25 next year. The growth…

A: Given Information: Dividend = $3.25  Growth rate in dividends = 5% Required return for Red Inc =…

Q: Sandhill Tire Co. just paid an annual dividend of $1.20 on its common shares. If Sandhill is…

A: Under dividend growth model, valuation of common stock is done by assuming that dividends keep…

Q: Each quarter, Crane, Inc., pays a dividend on its perpetual preferred stock. Today the stock is…

A: Those stocks that are prioritized over common stocks at the time of payment of dividends but did not…

Q: anther Inc common stock is selling for $58.77 per share. The company pays a constant annual ividend…

A: Solution:  Dividend is the amount of profits  that is paid by the company to its shareholders. In…

Q: Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $87.50 per share. The…

A: Given: Required rate of return =10.25%Share price =$87.50Growth rate =6.00%

Q: Company A1 is expected to pay dividends of $3 one year from today. Company A1 dividends to increase…

A: Dividend Discount Model = D1(1+i)1+D2(1+i)2........+Dn(1+i)n

Q: Jarett & Sons's common stock currently trades at $39.00 a share. It is expected to pay an annual…

A: Given information : Current value of stock = $39 Expected dividend = $ 3 Growth rate = 6%

Q: Jarett & Sons’s common stock currentlytrades at $30.00 a share. It is expected to pay an annual…

A: The rate of return that is expected by investors on their equity investment is term as the cost of…

Q: Samson Enterprises increases its annual dividend by 2 percent each year. The common stock has a…

A: Growth rate = 2% Current stock price =36.20 Required return =13%

Q: Credenza Industries is expected to pay a dividend of $1.50 at the end of the coming year. It is…

A: Expected dividend = $ 1.50 Selling price after 1 year = $ 61 Cost of equity = 9% Current price =…

Q: The last dividend paid by National Company was P2.00.  National Company’s growth rate is expected to…

A: P0=D0(1+g1)1+Ke+D0(1+g1)2(1+Ke)2+P2(1+Ke)2 P0 = Present Value of Stock  D0 = Last Paid Dividend =…

Q: Jarett & Sons's common stock currently trades at $26.00 a share. It is expected to pay an annual…

A: Given Information: Current stock price is $26 D1 is $1.75 Constant growth rate is 8% If new stocks…

Q: A company has stock which costs $44.00 per share and pays a dividend of $2.60 per share this year.…

A: Growth rate is the change in specific variable at a given time period which represents the growth in…