Aaron Inc. has 301 million shares outstanding. It expects earnings at the end of the year to be $602 million. The firm's equity cost of capital is 10%. Aaron pays out 50% of it's earnings in total: 30% paid out as dividends and 20% used to repurchase shares. If Aaron's earnings are expected to grow at a constant 7% per year, what is Aaron's share price?

Storico Company just paid a dividend of $2.20 per share. The company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company's stock is 13 percent, what will a share of stock sell for today?  Show your work.

Zoom Enterprises expects that one year from now it will pay a total dividend of $5.1 million and repurchase $5.1 million worth of shares. It plans to spend $10.2 million on dividends and repurchases every year after that forever, although it may not always be an even split between dividends and repurchases. If Zoom's equity cost of capital is 12.3% and it has 4.9 million shares outstanding, what is its share price today?

Shatin Intl. has 10.3 million​ shares, an equity cost of capital of 12.6% and is expected to pay a total dividend of $20.9 million each year forever. It announces that it will increase its payout to shareholders. Instead of increasing its​ dividend, it will keep it constant and will start repurchasing $10.3 million of stock each year as well. What is your estimate of​ Shatin's stock price after this​ announcement?

Pro Build Inc. has had a net income of $16 million in its most recent year. Net income is expected to grow by 3% per year. The firm always pays out 60% of net income as dividends and has 4 million shares of common stock outstanding. The required return is 13%.   What is the intrinsic value of the stock?

CX Enterprises has the following expected dividends: $1.12 in one year, $1.24 in two years, and $1.35 in three years. After that, its dividends are expected to grow at 4% per year forever (so that year 4's dividend will be 4% more than $1.35 and so on). If CX's equity cost of capital is 12.2%, what is the current price of its stock?

Summit Systems will pay a dividend of $1.67 this year. If you expect Summit's dividend to grow by 5.9% per year, what is its price per share if the firm's equity cost of capital is 11.7%? The price per share is $ (Round to the nearest cent.)

XYZ CORP just paid an annual dividend of $1.50 a share. The firm recently announced that all future dividends will be increased by 3 percent annually. What is one share of this stock worth to you if you require a rate of return of 12 percent?

IBM expects to pay a dividend of $4 next year and expects these dividends to grow at 7% a year. The price of IBM is $90 per share. What is IBM's cost of equity capital? A. 9.65% B. 10.23% C. 12.36% D. 11.44% E. 10.89%

Krell Industries has a share price of $22.35 today. If Krell is expected to pay a dividend of $0.84 this year and its stock price is expected to grow to $24.51 at the end of the year, what is Krell's dividend yield and equity cost of capital? The dividend yield is 3.8%. (Round to one decimal place.) The capital gain rate is 13.42 %. (Round to one decimal place.)