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- Amalgamated Industries currently pays no dividends. It will begin paying dividends in7 years. Its first dividend will be $6.65, and future dividends will grow at 1.12% peryear. If investors require a 6.65% return, what is the current stock price?$71.91$76.63$79.27$84.17$81.72A young company currently does not pay a dividend. The company retains all its earnings to finance its growth. However, 10 years from now the company is expected to start paying a $1.50 dividend. According to analysts, the dividend should then grow by 5% annually forever. If the required return on the share investment is 15%, what should be the company's share price five years from today? a. $16.28 b. $8.57 c. $11.50 d. $6.24New Gadgets, Incorporated, currently pays no dividend but is expected to pay its first annual dividend of $4.85 per share exactly 6 years from today. After that, the dividends are expected to grow at 3.4 percent forever. If the required return is 11.2 percent, what is the price of the stock today?
- The RLX Company just paid a dividend of $315 por share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely Assume investors require a return of 11 percent on this stock. a. What is the current price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What will the price be in three years and in fifteen years? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.. 32.16. a. Current price b. Price in three years Price in fifteen yearsDue to the current global economic conditions, Canary Ltd stopped its dividend payments. Dividends of $3.50 are expected to re-commence in 6 years and are expected to increase at a rate of 5% per year thereafter. If the required rate of return is 11%, what is the current value of the firm’s shares?NTT Corp is expected to pay a $2.80 annual dividend to its common shareholders next year. Analysts expect these dividends to grow indefinitely at a 6.5 percent annual rate. If the required rate of return on the common stock is 10.8 percent, what is the intrinsic value of the common stock? a. $56.28 b. $61.44 c. $65.12 d. $69.35
- A firm does not currently pay dividends. However, 10 years from today the firm will pay a dividend of $2.00 per share (i.e., the dividend per share at t=10 is equal to $2.00). Thereafter, dividends will grow at 3% per year indefinitely. What price would you pay today for one share of stock if the equity cost of capital is 7%? (Hint: draw a cash flow timeline!) O A. $50.00 O B. $27.20 O C. $46.73 D. $25.42WSUFIN Inc. does not expect to grow in the next several years. Its last annual dividend was $3.57 If the required rate of return on similar investments is 7 percent, how much should we pay for the stock today? (Round the answer to two decimal places.) $39.66 $35.42 $32.14 $51.00 none of theseVon Bora Corporation (VBC) is expected to pay a $3.00 dividend at the end of this year. If you expect VBC's dividend to grow by 6% per year forever and VBC's equity cost of capital to be 13%, then the value of a share of VBC stock is closest to $15.79 $25.72 $17.14 $42.86
- Wyatt oil presently pays no dividend. You anticipate Wyatt Oil will begin paying an annual dividend of $0.45 per share two years from today (T-2) and you expect dividends to grow by 3.4% per year thereafter. If Wyatt Oil's cost of equity capital is 11.4%, then the value of one share of Wyatt oil today is closest to: OA. $5.63 OB. $3.55 OC. $5.05 OD. $0.45 OE. $3.95 OF. $4.53 HApocalyptica Corp. pays a constant $28 dividend on its stock. The company will maintain this dividend for the next 10 years and will then cease paying dividends forever. If the required return on this stock is 6 percent, what is the current share price? 280.45 280.00 206.08 216.35 201.96company presently pays no dividend. You anticipate company will pay an annual dividend of $1.00 per share two years from today and you expect dividends to grow by 3% per year thereafter. If company’s equity cost of capital is 14%, then what is a fair value for a share of company today? Enter answer rounded to the nearest cent.
