Stephanie will require a return of at least 9% on her stock investments. Cheers Inc. is a beverage producer. It pays a dividend of $1 per share to its shareholders, which is likely to remain constant over an indefinite time period. What is will be the maximum payment amount that Stephanie pays for stock at Cheers Inc
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Stephanie will require a return of at least 9% on her stock investments. Cheers Inc. is a beverage producer. It pays a dividend of $1 per share to its shareholders, which is likely to remain constant over an indefinite time period. What is will be the maximum payment amount that Stephanie pays for stock at Cheers Inc?
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- Peter plans to invest in the ordinary share of Queens Ltd which is trading at $12.00 currently. From her friends, she learnt that the company will have a dividend of $1.20 per share at the next payment. Thereafter, the dividend payments is projected to grow at a rate of 5% for another two years. From the fourth year onward, Queens Ltd will adopt a constant dividend growth policy of 4% annually. If the required rate of return for Peter is 10%, what is the intrinsic value of the share?A stock currently sells for $20 per share and pays $1 per year in dividends. What is an investor's valuation of this stock if she expects it to be selling for $27 in one year and requires a 8 percent return on equity investments?Jeffrey Lash, an investor with a required rate of return of 15%, is looking to buy shares of GPB Capital a company that will pay its first dividend next year in the amount of $0.63 per share. During the following three years, GPB Capital expects to disburse dividends per share of $0.68, $0.83, and $1.13, respectively. Afterwards, GPB expect dividends will indefinitely grow at 4.1% annually. How much is Jeffrey Lash willing to pay today for one share of GPB Capital? a. $10.79 b. $11.42 c. $2.11 d. $11.23 e. $8.42
- Stephanie will require a return of at least 9% on her stock investments. Rebound Tourism Inc. is a travel planning establishment. Its shares sold for an average price of $40 per share last year (t = 0) and the management estimates to maintain a constant growth rate in dividends. Last year, it paid a dividend of $0.50 per share to itsshareholders. What is the maximum Stephanie would be willing to pay for stocks at Rebound Tourism?Stephanie will require a return of at least 9% on her stock investments and would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie wants to invest stock in the following companies1. Pan-Elixir Ltd. is a pharmaceutical company. Its stock is fairly priced. Last year (t = 0), it paid a dividend of $2.50 per share to its shareholders. The company management hasestimated that it will be able to maintain a constant growth rate in dividends of 3% per annum. 2. Rebound Tourism Inc. is a travel planning establishment. Its shares sold for an average price of $40 per share last year (t = 0) and the management estimates to maintain a constant growth rate in dividends. Last year, it paid a dividend of $0.50 per share to its shareholders. 3. Cheers Inc. is a beverage producer. It pays a dividend of $1 per share to its shareholders, which is likely to remain constant over an indefinite time period. 4. Think-Local Inc. paid $0.75 per share as dividend last year (t =…Maggie owns 100 shares of FloorMart, Inc. The firm pays a semi-annual dividend of $0.75 per share and offers the option to reinvest the cash dividends into additional shares of company stock. If the stock is selling for $55.00 per share, how many shares of stock will Maggie receive each dividend period if she chooses the dividend reinvestment plan?
- Wichita Realty Trust is expected to pay a modest dividend of $1.00/share for two years and then $2.00/share for years three through five. Then in year six, the trust is planning to pay a $40.00-per-share liquidating dividend and go out of business. What is the value of a share of this firm if the required return is 10%?Rowena plans to purchase a stock that is currently paying no dividend. Rowena expects the stock to pay its first dividend of $5.00 per share in eight years. Furthermore, she expects the firm to have an ROE of 16% and a dividend pay-out ratio of 60% thereafter. What value should Rowena place on the stock now if her required return on the stock is 8.75%?(Short answer will be fine)Fred expects to earn a total of 15 percent on his investments. He recently purchased shares of CC Corporation at a price of $20 a share. The company will pay a dividend of $1 next year. a)Based on constant dividend growth model, how many percent of the price of CC stock needs to change if Fred is to achieve his 15 percent rate of return? b)Fred owns 1000 shares in CC Corporation. At the company’s annual general meeting, five director seats are available for election. Fred can cast 4000 votes to one candidate and 1000 to the other. What is the type of voting system?
- Melissa Popp is thinking about buying some shares of Education, Inc., at $50 per share. She expects the price of the stock to rise to $75 over the next three years. During that time she also expects to receive annual dividends of $5 per share. a) What is the intrinsic worth of this stock, given a 10% required rate of return?Rachelle Ching is an investment analyst. She was asked by Macrille Samson, an investor, to assess the viability of an investment in Consti Corp. Macrille expects to hold the investment for five (5) years and sell it at the end of the holding period. Rachelle forecasted that Consti Corp. will pay the following dividends: Year Dividend per Share 5 P3.60 4 3.48 3 3.22 2 2.98 1 2.50 Rachelle expects that at the end of the third year, the selling price of the company's stock will be P125 per share. She also estimated that the cost of capital is 5%. The current stock price is P150 per share. What is the value of the shares?Coolibah Holdings is expected to pay dividends of $1.40 every six months for the next three years. If the current price of Coolibah stock is $21.80, and Coolibah's equity cost of capital is 18%, what price would you expect Coolibah's stock to sell for at the end of three years?
