Assume Gillette Corporation will pay an annual dividend of $0.68 one year from now. Analysts expect this dividend to grow at 12.8% per year thereafter until the 6th year. Thereafter, growth will level off at 1.9% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.9%? The value of Gillette's stock is $5.2 (Round to the nearest cent.)
Q: Anzio, Inc., has two classes of shares. Class B has 5 times the voting rights as Class A. If you own…
A: Shareholders, as owners of the company, have a financial stake in the organization and typically…
Q: Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts expect…
A: Dividend for year 1 is given = $0.66 Now we will calculate dividends from year 2 to year 6 growing…
Q: Assume Highline Company has just paid an annual dividend of $1.01. Analysts are predicting an 10.3%…
A: The dividend-discount model (DDM), a technique used in finance to assess a company's stock.…
Q: Assume Highline Company has just paid an annual dividend of $1.07. Analysts are predicting an 11.6%…
A: Current dividend = d0 = $1.07Growth rate for next 5 year = g5 = 11.6%Growth rate after 5 year = g =…
Q: HighGrowth Company has a stock price of $20. The firm will pay a dividend next year of $1.18, and…
A: Current Price of Stock = p = $20Expected Dividend = d = $1.18Growth rate = g = 4.4%
Q: Assume Gilette Corporation will pay an annual dividend of 50 62 one year bom now Analysts expect…
A: Year 1 dividend (D1) = $0.62 Year 2 dividend (D2) = $0.69006 (i.e. $0.62 * 1.113) Year 3 dividend…
Q: Slow 'n Steady, Inc., has a stock price of $31, will pay a dividend next year of $3.30, and…
A: Required return = (Dividend next year / Stock price) + Growth rate where, Dividend next year = $3.30…
Q: Assume Highline Company has just paid an annual dividend of $0.92. Analysts are predicting an 11.8%…
A: Stock price under dividend discount model will be the present value of all dividends and present…
Q: Assume Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect…
A: Price or Value of stock can be determined by discounting the future earning or dividends with the…
Q: 9%. What price must you expect Evco stock to sell for immediately after the firm pays the dividend…
A: Answer : Equity cost of capital = (D1/ current price ) + Growth rate 0.19 = (2.15/50.86) + Growth…
Q: Assume Gillette Corporation will pay an annual dividend of $ 0.65 one year from now. Analysts expect…
A: Given Data:Dividend of 1st year = $0.65Growth rate = 11.8%Cost of Capital = 7.2%
Q: Assume Evco, has a current stock price of $51.07 and will pay a $1.95 dividend in one year, its…
A: Current price = present value of next dividend + present value of sale price of stock
Q: Mackenzie Company has a price of $34 and will issue a dividend of $2.00 next year. It has a beta of…
A: The cost of equity can be computed using the CAPM model which uses a single factor which is the…
Q: Summit Systems will pay a dividend of $1.45 this year. If you expect Summit's dividend to grow by…
A: The Gordon Growth Model is a financial valuation model used to estimate the price per share of a…
Q: Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect this…
A: Dividend for Year 1 = d1 = $0.69Growth Rate for next 3 years = g3 = 11.9%Growth Rate after year 4 =…
Q: Summit Systems will pay a dividend of $1.48 this year. If you expect Summit's dividend to grow by…
A: Expected dividend (D1) = $1.48 Growth rate (g) = 5.3% Cost of capital (r) = 10.7%
Q: Assume Highline Company has just paid an annual dividend of $0.94. Analysts are predicting an 11.5%…
A: The dividend discount model refers to a model where it is assumed that the dividends are the best…
Q: Assume Gillette Corporation will pay an annual dividend of $0.67 one year from now. Analysts expect…
A: Where,P0 = Stock valueD0 = Current dividendg = growth rate in decimal format D0 ( 1 + g) =Expected…
Q: Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect…
A: The rice of the stock will be found by using the sum of all the dividends received and the current…
Q: Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expect…
A: The value of the stock is calculated using the following equationWhere, D1 is the expected dividend…
Q: Assume Highline Company has just paid an annual dividend of $0.98. Analysts are predicting an 11.2%…
A: The value of the stock is a representation of a company's dividend yield and the projected price of…
Q: Summit Systems will pay a dividend of $1.61 this year. If you expect Summit's dividend to grow by…
A: Price per share is calculated using following equation Price per share = D1r-g Where, D1 is expected…
Q: Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect…
A: Current price of share is that price which can be paid for purchase of the share. It is also called…
Q: Assume Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect…
A: Current price of share is that price which can be paid for purchase of the share. It is also called…
Q: Assume Highline Company has just paid an annual dividend of $1.02. Analysts are predicting an 10.4%…
A: The value of the stock can be calculated using the following equationWhere, D0 is the current…
Q: a. Assuming that Maynard's dividend payout rate and expected growth rate remain constant, and that…
A: The constant growth model is a stock valuation method used in finance to determine a stock's…
Q: Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect…
A: The value of a stock is equal to the present value of future dividends.
Q: What is the expected annual capital gain for Orange Corp stock, based on the Dividend Growth Model?…
A: The capital gain yield is the annual percentage increase in the price of the stock. In the case of a…
Q: Summit Systems will pay a dividend of $1.55 this year. If you expect Summit's dividend to grow by…
A: Expected Dividend = d = $1.55Growth Rate = g = 5.5%Cost of Capital = r = 10.9%
Q: nterprises has the following expected dividends: $1.13 in one year $1.19 in two years, and $1.34 in…
A: Year 1 dividend = $ 1.13 Year 2 dividend = $ 1.19 Year 3 dividend = $ 1.34 Growth rate = 3.8% Year 4…
Q: HighGrowth Company has a stock price of $20. The firm will pay a dividend next year of $1.03, and…
A: The objective of the question is to calculate the cost of equity capital for HighGrowth Company. The…
Q: If I purchase a semiannual-paying 8% coupon bond 27 days after the last coupon payment, what is the…
A: Assume face value of bond is $1000 Assume total number of days in a year = 365 Assume Number of days…
Q: Summit Systems will pay a dividend of $1.48 this year. If you expect Summit's dividend to grow by…
A: As per the constant dividend growth model price of the stock will be equal to the present value of…
Q: The value of Gillette's stock is Enter your response here
A: The distribution of profits by a company to its eligible shareholders is called dividend. The amount…
Q: Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect…
A: The value of the stock is calculated using the following equationWhere, D1 is the expected dividend…
Q: Assume Highline Company has just paid an annual dividend of $0.95. Analysts are predicting an 10.7%…
A: The Dividend Discount Model (DDM) is a quantitative method for predicting the price of a company's…
Q: Assume Gillette Corporation will pay an annual dividend of $0.66 one year from now. Analysts expect…
A: Value of stock will be the present value of all future dividends and present value of stock price in…
Q: Assume Highline Company has just paid an annual dividend of $1.06. Analysts are predicting an 11.3%…
A: Current Dividend = d0 = $1.06Growth Rate for next 5 Years = g5 = 11.3%Growth Rate after year 5 = g =…
Q: A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per…
A: The dividend yield is the percentage ratio that tells us about how much dividend a company is paying…
Q: Mackenzie Company has a price of $31 and will issue a dividend of $2.00 next year. It has a beta of…
A: Equity refers to that portion of the capital that is funded by the owners of the company. The cost…
Q: Assume Highline Company has just paid an annual dividend of $1.07. Analysts are predicting an 10.5%…
A: As per the dividend discount model the value of a stock today is the present value of all its future…
Q: GottaGrow Corporation has expected earnings per share of $10. It has a history of paying cash…
A: The dividend discount model (DDM) is a quantitative method used for predicting the worth} of a…
Q: Summit Systems will pay a dividend of $1.52 this year. If you expect Summit's dividend to grow by…
A: The Gordon Growth Model is a financial valuation model used to estimate the price per share of a…
Q: Krell Industries has a share price of $21.81 today. If Krell is expected to pay a dividend of $1.18…
A: DIVIDED YIELD The dividend yield is also known as dividend–Price ratio. Divided Yield is Computed :—…
Q: the dividend discount model what is the value of the Jasmine limited share if the firm's cost of…
A: The present value of a stock can be found using the two stage dividend discount model. Increase the…
Q: Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect…
A: The value of the stock today is the sum of the present value of its future cash flows such as…
Q: Emit Corporation has just paid an annual dividend of $1.00. Analysts expect this dividend to grow at…
A: In the following question we are required to calculate the Value of the share of Emit Stock using…
Q: Assume Highline Company has just paid an annual dividend of $1.05. Analysts are predicting an 10.5%…
A: Step 1:We have to calculate the value of the stock of the company. For this, we have to first…
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Gillette Corporation will pay an annual dividend of $ 0.63 one year from now. Analysts expect this dividend to grow at 1 1.1 % per year thereafter until the 6th year. Thereafter, growth will level off at 1.6 % per year. According to the dividend- discount model, what is the value of a Gillette share if the firm's equity cost of capital is 8.4 %? Question content area bottom Part 1 The value of a Gillette share is $ enter your response here. (Round to the nearest cent.)Assume Gillette Corporation will pay an annual dividend of $0.63 one year from now. Analysts expect this dividend to grow at 12.6% per year thereafter until the 6th year. Thereafter, growth will level off at 1.6% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 7.7%? The value of Gillette's stock is $ (Round to the nearest cent.)K thereafter Assume Gillette Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 11.5% per year until the 6th year. Thereafter, growth will level off at 2:2% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.4%? The value of Galetle's stock is $ (Round to the nearest cont.) CID
- Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect this dividend to grow at 11.5% per year thereafter until the 6th year. Thereafter, growth will level off at 2.3% per year. According to the dividend-discount model, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.4%? The value of Gillette's stock is $ (Round to the nearest cent.)Cullumber Wok Co. is expected to pay a dividend of $1.70 one year from today on its common shares. That dividend is expected to increase by 5.00 percent every year thereafter. If the price of Cullumber common stock is $17.00, what is the cost of its common equity capital? - Cost of common equity =?%Assume Highline Company has just paid an annual dividend of $1.04. Analysts are predicting an 11.3% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.5% per year. If Highline's equity cost of capital is 8.1% per year and its dividend payout ratio remains constant, for what price does the dividend - discount model predict Highline stock should sell? The value of Highline's stock is $. (Roun to the nearest cent.) Assume Highline Company has just paid an annual dividend of $1.04. Analysts are predicting an 11.3% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.5% per year. If Highline's equity cost of capital is 8.1% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is $…
- Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect this dividend to grow at 11.4% per year thereafter until the 5th year. Thereafter, growth will level off at 2.2% per year. According to the dividend discount model, what is the value of a Gillette share if the firm's equity cost of capital is 8.9% ?Pearson stock will pay an annual divident of $.26 next year. If after that, the dividend grows 2% per year and Pearson has a 6% cost of equity capital, what is Pearson's projeted stock price under the Constant Dividend Growth Model? Choose the closest. a) $4.33 b) $6.50 c) $9.80 d) $13.00Assume that shareholder's required rate of return (r) is 9%. Dr. Pepper is expected to pay a dividend of $2.00 per share (D1) next year. Moreover, investors expect dividends to grow at a constant rate of 4% per year (g). According to the Dividend Discount Model, what should be the current price per share of Dr. Pepper?
- Assume Highline Company has just paid an annual dividend of $1.04. Analysts are predicting an 11.5% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 4.8% per year. If Highline's equity cost of capital is 7.8% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is $ (Round to the nearest cent.) ...Summit Systems will pay an annual dividend of $1.53 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 10.2% ? The price per share is $ (Round to the nearest cent.)Suppose Acap Corporation will pay a dividend of $2.83 per share at the end of this year and $3.07 per share next year. You expect Acap's stock price to be $52.34 in two years. Assume that Acap's equity cost of capital is 10.7%. a. What price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for two years? b. Suppose, instead, you plan to hold the stock for one year. For what price would you expect to be able to sell a share of Acap stock in one year? c. Given your answer in part b, what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for one year? How does this price compare to your answer in part a? a. If you planned to hold the stock for two years, the price you would pay for a share of Acap stock today is $ (Round to the nearest cent.)