52-Week Price Div PE Net Lo Stock (Div) Yld % Ratio Chg Hi 77.40 10.43 Palm Coal .36 2.6 6 13.90 -.24 Lake Lead Grp 55.81 33.42 3.8 10 40.43 -.01 130.94 69.55 SIR 2.05 2.3 10 88.98 3.07 50.24 13.95 DR Dime.80 5.2 6 15.43 -.26 35.00 20.74 Candy Galore .32 1.5 28 ?? .18 According to your research, the growth rate in dividends for SIR for the next five years is expected to be 20 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.25 percent indefinitely. Assume investors require a return of 12 percent on SIR stock. According to the dividend growth model, what should the stock price be today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1.54 Close Price
52-Week Price Div PE Net Lo Stock (Div) Yld % Ratio Chg Hi 77.40 10.43 Palm Coal .36 2.6 6 13.90 -.24 Lake Lead Grp 55.81 33.42 3.8 10 40.43 -.01 130.94 69.55 SIR 2.05 2.3 10 88.98 3.07 50.24 13.95 DR Dime.80 5.2 6 15.43 -.26 35.00 20.74 Candy Galore .32 1.5 28 ?? .18 According to your research, the growth rate in dividends for SIR for the next five years is expected to be 20 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.25 percent indefinitely. Assume investors require a return of 12 percent on SIR stock. According to the dividend growth model, what should the stock price be today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1.54 Close Price
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...
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