ABC Corporation issued 15%, 1,000-par value preference shares. Interest is payable monthly. It will mature after 5 years with a liquidation value of 1,020. What is the value of this preference share to an investor who would like an overall return of 14.4%?
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ABC Corporation issued 15%, 1,000-par value preference shares. Interest is payable monthly. It will mature after 5 years with a liquidation value of 1,020. What is the value of this
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- ABC is expected to pay a dividend of $1.25 every six months for the next four years. The current share price is $25.76 and the relevant discount rate is 14% (compounded semi-annually). What do you expect the share price at the end of year 4 to be? a. $28.82 b. $26.74 c. $31.44 d. $25.12 PLEASE EXPLAIN, do not use PVA formula. Thank you.Company A will pay a dividend at the end of each year at 150Php for the next 3 years for Stock A with a discount rate of 6%. Company B, on the other hand, will pay annual dividend of 50php, 100Php, and 150Php respectively in the next 3 years for Stock B with a discount rate of 8%. Which stock would an investor favor?ABC Corporation issued 12%, 1000-par value preference shares. Interest is payable quarterly. It will mature after 10years with a liquidation value of 1,075. What is the value of this preference share to an investor who would like an overall return of 10%?
- river stock plans to pay dividends of $1.36, 1.15, $1.35, and $1.62 at the end of the next four years, respectively. After that, the company will be sold and shareholders are expected to receive $82.40 per share in year 6 when the sale should be finalized. If the required return is 11.4 percent, what is the current value of one share of this sock? $46.50 $51.08 $47.29 $47.71 $51.87CK Company stockholders expect to receive a year-end dividend of $5 per share and then be sold for $115 dollars per share. If the required rate of return for the stock is 20%. Required: Calculate the current value of the stock.Deluxe Company expects to pay a dividend of $2 per share at the end of year 1. $3 per share at the end of year 2. and then be sold for $32 per share at the end of year 2. If the required rate of return on the stock is 15%, what is the current value of the stock?
- Farley Inc. has perpetual preferred stock outstanding that sells for $30 a share and pays a dividend of $2.75 at the end of each year. What is the required rate of return?Gotham Ltd has issued perpetual preference shares with a $1,000 par value. The bank pays a quarterly dividend of $0.30 on a share. What is the current price of this preference share given a required rate of return of 5%, compounding quarterly?ABC is expected to pay a dividend of $1.25 every six months for the next four years. The current share price is $25.76 and the relevant discount rate is 14% (compounded semi-annually). What do you expect the share price at the end of year 4 to be? a. $28.82 b. $26.74 c. $31.44 d. $25.12
- Cie Ltd is expected to pay its ordinary shareholders a dividend of $0.75 in one years’ time. It is projected that these dividends will decline at a rate of 6% for the foreseeable future. If the ordinary share investor’s required rate of return is 12%, estimate the current value of each share.En. Ibrahim is considering to purchase 1,000 common shares from Company ABC. Dividends from the shares are payable at the end of half-yearly. The next dividend is due in exactly six months and is expected to be RM0.55 per share. The required nominal rate of return is 10% convertible semi-annually and an estimated nominal rate of future dividend growth is 2% convertible semi- annually. (i) Calculate, showing all working, the price that En. Ibrahim should pay for the shares. As a result of a recently announced expansion plan by company ABC, En. Ibrahim increases the estimated rate of future dividend growth to a nominal rate of 3% convertible semi-annually. (ii) Calculate the maximum price that En. Ibrahim should now pay for the shares. (iii) Explain the difference between your answers to part (i) and part (ii).Simtek currently pays a $3.5 dividend (D0) per share. Next year’s dividend is expected to be $4 per share. After next year, dividends are expected to increase at a 8 percent annual rate for 3 years and a 3 percent annual rate thereafter. Use Table II to answer the questions. Do not round intermediate calculations. Round your answers to the nearest cent. What is the current value of a share of Simtek stock to an investor who requires a 16 percent return on his or her investment?$ If the dividend in year 1 is expected to be $4 and the growth rate over the following 3 years is expected to be only 5 percent and then 3 percent thereafter, what will the new stock price be?$