National Inc. has been hit hard due to pandemic. The company’s analysts predict that earnings and dividends of the company will decline at a constant rate of 5% annually. Assume that cost of stock is 11% and dividend is P4.00. What will be the price of the company’s stock three years from now?
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National Inc. has been hit hard due to pandemic. The company’s analysts predict that earnings and dividends of the company will decline at a constant rate of 5% annually. Assume that cost of stock is 11% and dividend is P4.00. What will be the price of the company’s stock three years from now?
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- Brushy Mountain Mining Companys coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the companys earnings and dividends are declining at the constant rate of 4% per year. If D0 = 6 and rs = 14%, what is the estimated value of Brushy Mountains stock?Blanket Company has paid quarterly dividends every quarter for the past 15 years. Lately, slowing sales have created a cash crunch for the company. While the company still has positive retained earnings, the retained earnings balance is close to zero. Should the company borrow to continue to pay dividends? Why or why not?National Inc. has been hit hard due to pandemic. The company’s analysts predict that earnings and dividends of the company will decline at a constant rate of 5% annually. Assume that cost of stock is 11% and dividend is P4.00. What will be the price of the company’s stock three years from now? a. P25.50 b. P21.17 c. P20.35 d. P16.23
- The Canning Company has been hit hard due to increased competition. The company's analysts predict that earnings (and dividends) will decline at a rate of 5% annually into the foreseeable future. Assume that ks = 11% and D0 = $2.00. What will be the price of the company's stock in three years?The Cristiano Book Production Company has been hit hard due to increased competition. The company’s analysts predict that earnings (and dividends) will decline at a rate of 5 percent annually forever. Assume that ke = 11 percent and D0 = $2.00. What will be the price of the company’s stock three years from now?The Textbook Production Company has been hit hard due to increased competition. The company’s analysts predict that earnings (and dividends) will decline at a rate of 5 percent annually forever. Assume that rs = 11 percent and Do = $1.00. What will be the price of the company’s stock three years from now?
- General Importers announced that it will pay a dividend of $2.00 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 6 years. Then, 8 years from today, the company will begin paying an annual dividend of $1.00 forever. The required return is 10.00 percent. What is the price of the stock today?Due to demographics and increasing awareness about the potential dangers of smoking, PuffOff, a manufacturer of 'no-inhale' cigarettes, is experiencing declining sales and earnings. As a result, the company can only afford to pay a dividend next year of $2.15. The company is then expected to reduce its dividends by 11.00% in two years and 7.00% in three years. But from the fourth year onwards, dividends are expected to decline at a constant rate of 4.00% per annum forever. What is the price of PuffOff stock if the required return is 12%? OA) $29.27 B) $9.50 C) $10.68 OD) $12.31 O E) $10.96 Grar GOriole Corp. has been selling electrical supplies for the past 20 years. The company’s product line has changed very little in the past five years, and the company’s management does not expect to add any new items for the foreseeable future. Last year, the company paid a dividend of $4.55 to its common stockholders. The company is not expected to increase its dividends for the next several years. If your required rate of return for such firms is 15 percent, what is the current value of this company’s stock?
- Carla Vista Corp. has been selling electrical supplies for the past 20 years. The company’s product line has changed very little in the past five years, and the company’s management does not expect to add any new items for the foreseeable future. Last year, the company paid a dividend of $5.65 to its common stockholders. The company is not expected to increase its dividends for the next several years. If your required rate of return for such firms is 14 percent, what is the current value of this company’s stock?The Textbook Production Company has been hit hard due to increased competition. The company’s analysts predict that earnings (and dividends) will decline at a rate of 5 percent annually forever. Assume that rs = 11 percent and Do = $1.00. What will be the price of the company’s stock three years from now? a) $27.17 b) $ 5.09 c) $28.50 d) $10.18 e) $20.63Due to the devastating economic impact of the global pandemic, a firm just announced that over the next two years it will pay a reduced dividend of $1.50 per year. Three years from today it expects to pay a dividend of $4.80 and thereafter dividends are expected to grow at a constant annual growth rate of 2.8%. Assuming a discount rate of 11%, calculate the fair value of the firm's stock today.
