You have just purchased a share for $29.33. The company is expected to pay a dividend of $0.57 per share in exactly one year. If you want to earn a 10.7% return on your​ investment, what price do you need if you expect to sell the share immediately after it pays the​ dividend?

Q: MG ltd just paid a dividend of $5.4 per share. investors expect the dividends to grow by 6.8% per…

A: In this we need to use constant growth rate formula to calculate fair value of equity.

Q: The owners of Sitty Inc need a return of 12% pa. The current performance of the firm leads to the…

A: 1 : The 12% return if the share price is 22/share = 22 * 12% = 2.64 That means on investing 22…

Q: You are told by your investment advisor that Laduma Co. is expected to earn R5 per share next year,…

A: Formulas:

Q: (This question has three parts.) Von Bora Corporation is expected pay a dividend of $1.99 per share…

A: Value per share can be calculated by discounting the future cash flows by relevant discount rate.…

Q: Assume Evco, has a current stock price of $51.07 and will pay a $1.95 dividend in one year, its…

A: Current price = present value of next dividend + present value of sale price of stock

Q: Eastern Electric currently pays a dividend of $1.64 per share and sells for $27 a share.   a. If…

A:

Q: Summit Systems will pay a dividend of $1.48 this year. If you expect​ Summit's dividend to grow by…

A: Expected dividend (D1) = $1.48 Growth rate (g) = 5.3% Cost of capital (r) = 10.7%

Q: You just purchased a share of SPCC for ​$95. You expect to receive a dividend of ​$7 in one year. If…

A: Total return includes dividend yield and capital gain yield

Q: A mature manufacturing firm just paid a dividend of $588 but management expects to reduce the payout…

A: Introudction : Dividend = 5.88 Growth rate reduced = 4.32% required return = 8.46% as per the above…

Q: Welders Limited has just paid a cash dividend of $4.00 per share. The required return on the stock…

A: In this we need to use constant growth model.

Q: You want to purchase some share of JJ Farms stock but need a rate of return of 17.5 percent to…

A: If the company pays consistent dividend per year then the share value will be computed by dividing…

Q: Six months ago, you purchased 1,400 shares of ABC stock for $21.33 a share. You have received…

A: Given: Number of shares = 1,400 Purchase price = $21.33 Sale price = $24.47 Dividend = $0.6

Q: Ground Chuck Processing just paid its annual dividend of $1.25 per share. The firm recently…

A: Dividend paid = 1.25 Constant growth in dividends = 3% Required Return = 11.50%

Q: Rylan Industries is expected to pay a dividend of $5.80 year for the next four years. If the current…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: ow much are you willing to pay for one share of  Group stock if the company just paid an OMR 0.95…

A:

Q: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.6 million and…

A: given, forever dividend = $9.2 million r=13.3% outstanding shares = 4.8 million

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

A: The cost of equity is the return an investor requires by investing in the equity shares of a…

Q: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.6 million and…

A: Total amount to be spent on dividends and repurchase forever (A) = $9.2 million Cost of capital (r)…

Q: You purchased a share of a company five years ago for $75 per share and the current price is $80 per…

A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…

Q: Sinar Harapan Berhad just paid a dividend of RM3.20 per share yesterday. The financial analyst has…

A: The question is related to Dividend discount growth model. The price of share will be calculated…

Q: You just purchased a share of Northstar Sports for $104.82. You expect to receive a dividend of…

A: It is given that :current stock price - $104.82 Dividend (next yr)- $5.05 Price in 1 yr - $106.88

Q: Masetti Company’s stock has a required rate of return of 11.50%, and it sells for $25.00 per share.…

A: Given Data: Required rate of return = 11.50% Selling price of share = $25 per share growth rate =…

Q: ou expect a share of stock to pay dividends of $3 in one year. After that dividends are expected to…

A: Required rate of return (Re) = 12% Growth rate for Year 1 and Year 2 = 10% Growth rate from Year 3 =…

Q: XYZ Inc’s most recent dividend was $20 per share. Dividends are expected to grow at an 9% annual…

A: Recent Dividend = 20 Growth rate = 9% Required rate of return = 15%   Using Constant Growth Model,…

Q: Tresnan Brothers is expected to pay a $1.80 per share dividend at the end of the year (i.e., D1 =…

A: Current share value : it means current price of share at which share is currently trading ( buying…

Q: If you buy Disney stock at $85/ share and sell it for $90/ share and they pay a $1 dividend during…

A: Total Return - it means total earning on any security held for the time being, whether it is…

Q: A company with a share price of £5.50 and 500,000 shares plans to undertake an investment project…

A: To find out the formula of new share price, we need to apply the formula of dividend valuation…

Q: Swallow shares are currently selling for $29.80 and the company recently paid a dividend of $0.80…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: Shatin Intl. has 10.3 million​ shares, an equity cost of capital of 12.6% and is expected to pay a…

A: Total Stock Value = (Future value of total dividends + repurchasing of stocks) / equity cost of…

Q: Matilda Industries pays a dividend of $2.15 per share and is expected to pay this amount…

A: The value of the stock can be calculated by dividing cost of capital from the dividends per share if…

Q: Abel, Inc. just paid a dividend of $3.0 per share and you think they will continue to pay $3.0 per…

A: Since there is no growth rate that is no growth in dividend price of stock = Dividend / Cost of…

Q: Unheardof, Ic., has just paid a dividend of $5 per share. This dividend is anticipated to increase…

A: In the given question we need to compute the market value of a share of the company with following…

Q: Last year Artworks, Inc. paid a dividend of $1.75. You anticipate that the company’s growth rate is…

A: Formula:

Q: Veloo has just bought the common stock of XYZ company. The company expects to grow at the following…

A: Expected dividend year 1 = Dividend year 0 * (1+g1) Expected dividend year 2 = Dividend year 1 *…

Q: AirMas Airlines will pay a RM4 dividend next year on its common stock, which is currently selling at…

A: The dividend discount model is the model of stock valuation that assumes that the stock price of a…

Q: William Brown is interested in purchasing the common stock of Oriole, Inc., which is currently…

A: Stocks are the units of the capital of a company and are also referred to as shares of the company…

Q: What is your total percentage return on this investment? What is your total dollar return on this…

A: The expected return of investment refers to the return that is anticipated on an investment.…

Q: The Baron Basketball Company (BBC) earned $10 a share last year and paid a dividendof $6 a share.…

A: Calculation of Current Price, Amount Paid for BBC Stock and Amount to Pay for the Stock:The current…

Q: Healthy Foods just paid its annual dividend of $1.62 a share. The firm recently announced that all…

A: Dividend discount model is a security valuation method which is used to forecast or predict the…

Q: A company with a share price of £5.50 and 500,000 shares plans to undertake an investment project…

A: GIVEN, D1=25pg=7%r=11%investment share price = 5.5shares = 500,000

Q: ou just purchased a share of SPCC for ​$101.You expect to receive a dividend of $6 in one year. If…

A: Dividend yield = dividend / current price

Q: (This question has three parts.) Von Bora Corporation is expected pay a dividend of $2.07 per share…

A: Given: Von Bora expected dividend paid is $2.07 per share at the end of the year. $2.34 per share at…

Q: You are told by your investment advisor that Ladumo Co. is expected to earn R5 per share next year,…

A: Calculation of value of the stock: Answer: Total value of stock is R47.33

Q: Anderson​ Motors, Inc. has just set the company dividend policy at ​$0.60 per year. The company…

A: Stock price = Annual dividend for annuity / Rate of return

Q: Home Company paid an annual dividend of RM0.90 per share this year. The company expects that the…

A: The Supernormal Growth Model is the model in which the value of the stock is measured through its…

Q: Our company, which was founded 10 years ago, has allocated 10,000 shares to investors at 1 TL…

A: Note: It is a situation where multiple sub-parts have been asked, so we are allowed to solve the…

Q: Wichita Realty Trust is expected to pay a modest dividend of $1.00/share for two years and then…

A: Given information: Rate of return is 10% Dividend for first two years is $1.00 Dividend for next…