ABC Inc. will be in business for only the next 10 years and pays an annual dividend of $2.65 for those ten years? What is the present value of a share of stock for this company if we want a 7% return on the stock? O A. None of the above. O B. $18.61 O C. $69.44 O D. $526.96
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- Suppose a company will be in business for only the next 10 years and pays an annual dividend of $1.75 for those ten years. What is the present value of a share of stock for this company if we want a 9% return on the stock? O A. $19.08 O B. $15.97 OC. $26.59 O D. $11.23Rylan Industries is expected to pay a dividend of $5.70 year for the next four years. If the current price of Rylan stock is $31.33, and Rylan's equity cost of capital is 15%, what price would you expect Rylan's stock to sell for at the end of the four years? O A. $26.33 B. $73.72 OC. $21.06 OD. $47.39Credenza Industries is expected to pay a dividend of $1.50 at the end of the coming year. It is expected to sell for $61 at the end of the year. If its equity cost of capital is 9%, what is the expected capital gain from the sale of this stock at the end of the coming year? .... O A. $57.34 O B. $5.04 OC. $55.96 O D. $3.66 ..
- Beta Corporation is expected to pay the following dividends per share over the next two years, respectively: $5 and $7. If you expect to be able to sell the stock for $100 in next two years and your required rate of return is 10%, what is the most that you should be willing to pay for a share of this stock today? O A. $97.92 O B. $112 O c. $92.97 O D. $85.46Hudson Corporation will pay a dividend of $2.30 per share next year. The company pledges to increase its dividend by 2.40 percent per year indefinitely. If you require a return of 10.30 percent on your investment, how much will you pay for the company's stock today? 3 E Multiple Choice O $28.43 $29.11 $30.28 $27.95 RMonmouth Laboratories, Inc. pays a $3.29 dividend every year and will maintain this policy forever. What price should you pay for one share of common stock if you want an annual return of 7.5% on your investment? Select one: a. $43.87 b. $21.92 c. $43.84 d. $44.84 e. $43.20
- Rylan Industries is expected to pay a dividend of $5.80 year for the next four years. If the current price of Rylan stock is $32.34, and Rylan's equity cost of capital is 12%, what price would you expect Rylan's stock to sell for at the end of the four years? A. $64.88 B. $18.54 C. $23.17 D. $41.71The Sly Fox pays a constant dividend of $1.46 a share. The company announced today that it willcontinue to pay the dividend for another two years and then in year 3 it will pay a final liquidatingdividend of $15.25 a share. What is one share of this stock worth today at a required return of 18.5%?Select one:a. $11.44b. $12.92c. $14.20d. $13.09e. $12.07ABC 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.
- E Burnett Corporation pays a constant $27 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 12 percent, what is the current share price? Multiple Choice O O $149.50 $152.56 $170.86 $270.00 8 Help Save & ExitGamma Corporation just paid a dividend of $3.00 per share on its common stock. Dividends are expected to grow at an annual rate of 8% for next two years and then at 3% thereafter. If you want minimum return of 10%, what is the most that you would be willing to pay for a share of Gamma Corporation today? o earn a O A. $51.29 O B. $49.99 O C. $48.39 O D. $53.24Credenza Industries is expected to pay a dividend of $1.55 at the end of the coming year. It is expected to sell for $68 at the end of the year. If its equity cost of capital is 10%, what is the expected capital gain from the sale of this stock at the end of the coming year? OA. $63.23 OB. $4.77 O.C. $61.82 OD. $6.18