The last paid dividend is $4 for a share of common stock that is currently selling for $50. What is the cost of common equity if the long-term growth rate on dividends for the firm is expected to be 8%?

Q: Ivanhoe, Inc., is a mature firm that is growing at a constant rate of 5.62 percent per year. The…

A: Market value of company stock is present value of all future cash flows that is Calculated using…

Q: Eakins Inc.'s common stock currently sells for $55.00 per share, the company expects to earn $2.75…

A: First, dividend will be computed as follows:  Payout ratio * Earning per share…

Q: Petron Corporation is expected to pay P3.50 per share dividend at the end of the year. The dividend…

A: The corporation  is expected to pay P3.50 per share dividend at the end of the year. The dividend is…

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: A business’s ordinary shares are currently trading at £2.00 (ex dividend) each in the capital…

A: Given the following information: Price of shares: $2 per share Next year's dividend: $0.14 per…

Q: Brookes Corporation has an expected dividend (D1) of $1.60, a current stock price (P0) of $40, and a…

A: The dividend discount model is used by investors to determine the price of stocks. The stocks are…

Q: A business’s ordinary shares are currently trading at £4.00 (ex dividend) each in the capital…

A: Given the following information: Price of shares: $4 per share Next year's dividend: $0.22 per…

Q: A company’s common stock is currently selling at $40 per share. Its most recent dividend was $1.60,…

A: Cost of retained earnings is calculated by dividend growth model. Last dividend paid = 1.6 growth…

Q: CX Enterprises has the following expected dividends: $1.04 in one year, $1.18 in two years, and…

A: Cost of capital = 11.7% Dividend in year 3 = $ 1.33 Growth rate after year 3 = 4%   As per formula…

Q: North Side Corp’s most recent dividend was $2.80 and its required return is 11 percent.  What is the…

A: Answer Dividend(Do) = $2.80 Dividend (D1) = ($2.80 + 6%) = $2.968 Required rate of return = 11%…

Q: mannix corporation stock currently sells for $65 per share. the market requires a return of 7…

A: According to the Gordon growth model.   Price of stock = Recent dividend ×(1+ growth rate )(required…

Q: My Inc. has a dividend growth rate of 6%, a market price of $16 a share, and a required return of…

A: Following information is given in the question: Dividend growth rate (g) = 6% = 0.06 Price of share…

Q: he dividend per share was 27 last year while the current market price of the shares is 135. The…

A: The return required by a business for an investment or project, or by an individual for an equity…

Q: Sunland Inc.’s common shares currently sell for $35 each. The firm’s management believes that its…

A: Given information: Shares price (P) : $35 (As it is the market price) Dividend paid (D0): $2 Growth…

Q: Arts and Crafts, Inc. will pay a dividend of $4 per share in 1 year. It sells at $50 a share, and…

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: Chelsea Fashions is expected to pay an annual dividend of $0.80 a share next year. Themarket price…

A: Annual Dividend =0.80 Current stock price = 22.40 Growth rate =5%

Q: Krell Industries has a share price of $21.88 today. If Krell is expected to pay a dividend of…

A: The stock price which is the maximum price to be paid for share consists of dividends and terminal…

Q: Company BestWare just paid a dividend of $2.00, and it's dividend is expected to grow at a constant…

A: Dividend Yield Dividend yield refers to the financial ratio, which is measured based on the annual…

Q: Your company’s stock sells for P60 per share. The dividend declared last year was P2.00. It’s…

A: To calculate the firm’s cost of new equity we will use the following formula   Firm’s cost of new…

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: Hurricane Corporation expects to grow its dividend by 5% per year. The current dividend is $2 per…

A: Given details are as below : Current dividend (D0) = $2 Growth rate (g) = 5% Required rate of return…

Q: Martin Corporation’s common stock is currently selling for $50 per share. The current dividend…

A: Given:

Q: Assuming there is 5 cost to be incurred in issuing per share, how much is the current cost of…

A: Cost of Equity = {D1 / (P - F)} + g D1 = D0 x (1 + g) Here, D0 = Last Year Dividend D1 = Next Year…

Q: Gremlin Industries will pay a dividend of $1.65 per share this year. It is expected that this…

A: In the question, the value of the dividend to be paid, the growth rate and the stock price are…

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: what is Krell’s dividend yield and equity cost of capital?

A: Information Provided: Current price = $22 Dividend = $0.88 Expected stock price = $23.54

Q: Your firms common stock is currently priced at Sh. 19.06 a share. The company just paid Sh. 1.15 per…

A: Current price of stock (P0) = Sh. 19.06 Last dividend (D0) = Sh. 1.15 Growth rate (g) = 2.5% Next…

Q: Sorenson Systems, Inc. is expected to pay a dividend of $3.30 at year end (D1), the dividend is…

A: Wacc is the weighted average cost of capital

Q: Boone's last dividend was $1.80 per share, and the dividend is expected to grow at 7 percent…

A: Risk-free rate = 8% = 0.08 Beta = 0.90 Market premium = 7% = 0.07 Required Rate of Return (RRR) =…

Q: An all-equity firm had a dividend expense of $45,000 last year.  The market value of the firmis…

A: Market value today, V is associted with the total expected dividend expense D1 via the following…

Q: DEF Company's current share price is $17 and it is expected to pay a $1.55 dividend per share next…

A: Cost of equity can be computed by the following formula, Re = (D1 / P0) + g Where, D1 = Dividends…

Q: The most recent dividend paid by Altier Corporation was $3.25. That dividend is expected to grow by…

A: Given: Recent dividend = $3.25 Year 1 growth rate = 8% Year 2 growth rate = 7% Constant growth rate…

Q: Lamey Gardens has a dividend growth rate of 5.6 percent, a market price of $13.16 a share, and a…

A: Given: Growth rate = 5.6% Market price = $13.16 Required return = 14%

Q: Patah Hati Berhad's common stock is selling for RM22.00 per share. The last dividend was RM1.20, and…

A: Cost of new common equity involves the flotation cost due to which cost rises.

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: A firm pays out all earnings in dividends. The firm just paid a $1 dividend. The dividend is…

A: Last dividend = $ 1 Growth rate for first 3 years = 10% Growth rate after 3 years = 4% Cost of…

Q: Jarett & Sons' common stock currently trades at $21.00 a share. It is expected to pay an annual…

A: Given Information: a)Current Price of common Stock (P0) = $ 21.00 per share Expected Dividend(D1) =…

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…

Q: Krell Industries has a share price of $22.79 today. If Krell is expected to pay a dividend of 1.19%…

A: Current stock price = $22.79 Dividend rate = 1.19% Growth rate = 23.33%