46. IBIS Corporation has had dividends grow from $2.50 per share to $6.85 per share over the last 10 years (the $6.85 per share dividend was paid yesterday; that is, D0 = $6.85). This compounded annual growth rate in dividends is expected to continue into the future forever. If the current market price of IBIS’s stock is $54.00 per share, what rate of return do investors expect to receive from buying IBIS stock? (Record your answer rounded to 1 decimal place; for example, record 18.29654% as 18.3). 47. Jazper, Inc. just paid a dividend of $4.12 per share (that is, D0 = 4.12). If the growth rate in Jazper’s dividends is expected to shrink every year (forever) by 8 percent (that is, g = -8.0% = -.08) and if Jazper’s required rate of return on equity is 26.2%, what is the current equilibrium price of Jazper’s stock?

Financial analysts forecast Safeco Corp.'s (SAF) growth rate for the future to be 10 percent. Safeco's recent dividend was $1.4 What is the value of Safeco stock when the required return is 12 percent? ( Round your answer to 2 decimal places.)

Suppose that a firm's recent earnings per share and dividend per share are $3.10 and $2.10, respectively. Both are expected to grow 7 percent. However, the firm's current P/E ratio of 30 seems high for this growth rate. The P/E ratio is expected to fall to 26 within five years. Compute the dividends over the next five years. (Do not round intermediate calculations. Round your answers to 3 decimal places Years First year Second year Third year Fourth year Fifth year Dividends Compute the value of this stock in five years. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Stock price

PerfectlySoft Corp. is experiencing rapid growth. Dividends are expected to grow at 26 percent per year during the next three years, 15 percent over the following year, and then 4 percent per year thereafter indefinitely. The required return on this stock is 8.18 percent, and the stock currently sells for $79.91 per share. What is the projected dividend (in $) for the coming year? Answer to two decimals, carry intermediate calcs. to four decimals.

The Duo Growth Company just paid a dividend of $1.00 per share. The dividend is expected to grow at a rate of 24% per year for the next three years and then to level off to 5% per year forever. You think the appropriate market capitalization rate is 19% per year. a. What is your estimate of the intrinsic value of a share of the stock? (Use intermediate calculations rounded to 4 decimal places. Round your answer to 2 decimal places.) Intrinsic value per share b. If the market price of a share is equal to this intrinsic value, what is the expected dividend yield? (Use intermediate values rounded to 2 decimal places. Round your answer to 2 decimal places.) Expected dividend yield c. What do you expect its price to be one year from now? (Use intermediate values rounded to 4 decimal places. Round your answer to 2 decimal places.) Expected price d-1. What is the implied capital gain? (Use intermediate values rounded to 2 decimal places. Round your answer to 4 decimal places.) Implied Capital…

The Bouchard Company's EPS was $5.90 in 2021, up from $3.47 in 2016. The company pays out 50% of its earnings as dividends, and its common stock sells for $31.00. a. Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.) Round your answer to two decimal places. % b. The last dividend was Do = 0.50($5.90) = $2.95. Calculate the next expected dividend, D1, assuming that the past growth rate continues. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. What is Bouchard's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. %

Musical Chipmunks Co. just paid a dividend of $2.75 per share. The analysts consensus is that its dividends will be increased by 3% per year, forever. Calculate Musical Chipmunks dividends per share in years 1, 2 and 3. Also calculate the intrinsic value of a share of Musical Chipmunks Co. today, For this problem, assume a market capitalization rate (k) (of 10%.

Lawrence​ Industries' most recent annual dividend was ​$2.01 per share (D0=$2.01​), and the​ firm's required return is 14​%. Find the market value of​ Lawrence's shares when dividends are expected to grow at 8​% annually for 3​ years, followed by a 7​% constant annual growth rate in years 4 to infinity.

(Related to Checkpoint 10.1) (Common stock valuation) Header Motor, Inc., paid a $3.27 dividend last year. At a constant growth rate of 4 percent, what is the value of the common stock if the investors require a 9 percent rate of return? The value of the common stock is $ (Round to the nearest cent.)