Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.80 next year. The growth rate in dividends for all three companies is 4 percent. The required return for each company’s stock is 8 percent, 11 percent, and 14 percent, respectively. What is the stock price for each company?  red ink:  yellow ink: blue company:

Q: Growth Company's current share price is $19.95, and it is expected to pay a $1.00 dividend per share…

A:

Q: ares are 10,

A: Outstanding Share of the company is 10 Lakh Dividend per Share = 4.5 Per shares Total Dividend Paid…

Q: Company F will have earnings per share of $2 this year and expect that they will pay out $1 of these…

A: A percentage that represents the increase in a particular variable at a particular time interval is…

Q: b) Guzman Enterprises has three companies, Angel Inc., Charity Inc., and Joy Inc. Each of the…

A: Given information: D1 =$4 (For all three compnies)g=6% (for all three companies)r=9%,12%,15% for…

Q: Panhandle Industries, Inc., currently pays an annual common stock dividend of $8.80 per share. The…

A: Po = D1 / Ke - g   Po = Current market price D1 = Expected dividend Ke = Cost of equity G=Growth…

Q: The current year profits of Levelex Inc. is 1.000.000₺ and expected profits for the next year is…

A: Constant dividend model is the model of share valuation in which the share price is calculated on…

Q: Pacific Wind and Solar pays a dividend at the end of the year of $6 per share, but over the year,…

A: The annual rate of return on the stock can be calculated as sum of dividend yield and capital gain…

Q: Brooks Sporting Inc. is prepared to report the following 2018 income statement(shown in thousands of…

A: Calculation of dividends per share in the year 2018:

Q: ZippleCrunch Corp. will pay a dividend of $2.34 per share at the end of next year (end of year 1)…

A: We will first calculate the dividend rate thereafter we will use that dividend to calculate the…

Q: Dividend growth rate of a company, if its total book equity is 60 000, and the last year profit and…

A: The dividend growth rate is the annualised percentage rate of increase in a stock's dividend over a…

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

A: Stock price can be computed as follows: Price=DividendRequired return-Growth rate

Q: Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is…

A: Weighted average cost of capital (WACC) of a firm is combination of cost for component of capital in…

Q: Evelyn Incorporated is expected to pay a dividend at year end of D1 = $2.25. This dividend is…

A: Before tax cost of debt =7.50% After tax cost of debt = Before tax cost of debt * (1-tax rate) After…

Q: The Erie Heating Company has been very successful in the past four years. Over these years, it paid…

A: given information   paid stock dividend in year 1 = $4 paid stock dividend in year 2 =   $4.20 paid…

Q: The current year's profits of Ferro Inc. is 1200 and the next year's profits are estimated as 1400…

A: Given, current Profit  = 1200 next year profit = 1400 growth rate = (next year profit / current year…

Q: company has stock which costs $45.00 per share and pays a dividend of $2.50 per share this year. The…

A: We can use the dividend discount model here. As per the dividend discount model: P0 = D1/(r-g) where…

Q: DD Plc is expected to declare earnings per share of £1.60 next year. The company historically has…

A: Present value of growth opportunities is calculated using the current market price of stock and…

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: The Giant Machinery has the current capital structure of 65% equity and 35% debt. Its net income in…

A: a) Calculate the dividend pay out ratio as follows: Dividend Payout ratio = total dividends/ total…

Q: Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is…

A: given, D1=$2.50g=5.50%p0=$40rd=7.50%tax = 40%wd=45%we=55%

Q: Aboudy Corporation's stock price is currently $22.00 per share. The company has just paid a dividend…

A: The formula used is shown:

Q: What is the growth rate for Dalton​ Inc.?

A: Expected rate of return is the return expected from an investment. It is the rate that an investor…

Q: The earnings, dividends, and stock price of Stan Company are expected to grow at 7 percent per year…

A: We need to use constant growth model to calculate cost of retain earning. The equation is Stock…

Q: Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is…

A: WACC is the average cost of capital which can be calculated the multiplying the weight of securities…

Q: dney Ltd. was paid a dividend of $3.97 last year. If the company's growth in dividends is expected…

A: The given problem can be solved using constant growth dividend model.

Q: A company has an ROE of 12% and payouts 44% of its earnings as dividends.  It is planning to pay a…

A: Dividend is the part or share of profits that is being distributed to shareholders of the company.…

Q: firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has…

A: Company pay the dividend to preferred stock holders and common stock holders from the net income…

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: g the next 12 months, Rooster, Inc. plans to pay dividends of $1.20 per share. Currently, its stock…

A: Cost of retained earning will be the cost of equity.

Q: Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.50 next year. The growth…

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

Q: Collins Inc. has just paid its annual dividend of $2.2. The company expects that its dividends in…

A: Using the sum of the present values of all possible dividends to be received and the expected…

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: a) Newdeal Inc. follows a policy of distributing 45% of its profits and investing the rest in the…

A: Growth rate = Retention ratio * Average Profitability Intrinsic Value = Expected Dividend / (…

Q: ABC Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is expected to…

A: Computation:

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: A company has net earnings of AED 10,000 for the current vear and suppose the company maintains the…

A: In order to determine the earnings per share, the earnings available to equity shareholders are…

Q: The income statement of Blue Co. in 2021 shows a net Income of P2,400,000. It is the policy of the…

A: Given: Cash dividend = P5 Current market price = P25

Q: The Seneca Maintenance Company currently (that is, as of year 0) pays a common stock dividend of…

A: As per Dividend Discount Model, P0= D1 / (ke-g) Where D1 = Expected Dividend ke = Expected Return g…

Q: Countess Corp. is expected to pay an annual dividend of $3.97 on its common stock in one year. The…

A: Calculating the cost of equity using the formula of dividend discounting model. We have,Current…

Q: Arya Inc.'s latest net income was $1,250,000, and it had 225,000 shares outstanding. The company…

A: Net income = $ 1,250,000 Number of shares = 225,000 Payout ratio = 45%

Q: Verga plc has 10,000,000 shares and £16,000,000 current earnings, from which it distributes 50% as…

A: Here,

Q: Calculate EPS after stock dividend is paid and what impact would the stock dividend have on Gordong…

A: Given that: Net Income = $45 million Number of Shares = 15,000,000  Stock dividend = 20%

Q: Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $4.15 next year. The growth…

A: The dividend discount model states that the dividends that are paid by a company are good indicators…

Q: Tets limited is a multi- national company. The company's current year dividend is Shs.1.56 per share…

A: Given, Current year dividend = shs.1.56 growth Rate = 3% Current Price of the Stock   = shs. 28…

Q: Panhandle Industries, Inc., currently pays an annual common stock dividend of $2.20 per share. The…

A: given, D0= $2.20g=8%dividend payout = 40%multiple = 8