Ecolap Inc. (ECL) recently paid a $0.34 dividend. The dividend is expected to grow at a 12.50 percent rate. The current stock price is $42.52. What is the return shareholders are expecting? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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A: All share prices used in the solution have been expressed in $ / share.IPO Price, P0 = 14, Closing…
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A: GIVEN, RATE = 13% D0= $6.75 company announce it will increase dividend by $10.50 each year till next…
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A: Expected Earning Per share(E1) =$3.50 Dividend Payout RAtio = 60% Dividend(D1) = $3.50*60% = $2.10…
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A: Let D(-4) = Dividend 4 years ago = $1.2 D(-3) = $1.26 D(-2) = $1.33 D(-1) = $1.44 D0 = $1.52 Let g =…
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A: Current Share Price: The current price of a stock, currency, commodity, or precious metal that is…
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A: Current Share Price can be calculated by adding the present values of future dividends Dividend paid…
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A: Formula used: Value after year 10 year=Dividend10×(1+Growth rate) (Required return-Growth…
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A: Current share price = present value of future cash inflows in form of divided Divided just paid…
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A: Part a: Number of shares outstanding = 16,000 Value of Equity = $1,120,000 Price of share = Value of…
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A: If there is no growth in the future of the company, The Current value of the stock = Dividend Paid/…
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A: COST OF EQUITY : = (NEXT YEAR DIVIDEND / PRICE) + GROWTH RATE
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A: Calculation of above requirement are as follows.
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A: The share price refers to the value of the amount at which is traded in the market. Initially, the…
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Q: After a 3-for-1 stock split, Tyler Company paid a dividend of $0.70 per new share, which represents…
A: Stock Split = 3 for 1 New Share dividend = 0.70 increase in pre split dividend = 6% Before split…
Q: Nynet, Inc., paid a dividend of $3.92 last year. The company's management does not expect to…
A: given, dividend paid = $3.92 required return = 14.50%
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A: A company has several sources from where it can raise funds. It can issue equity shares and the…
Q: Everest Inc's preferred stock pays a dividend of $1.40 per quarter, and it sells the preferred stock…
A: SOLUTION : GIVEN, Everest incs preferred stock price = $27.15 per share Dividend per quarter = $1.40…
Q: Suppose Stark Ltd. just issued a dividend of $2.08 per share on its common stock. The company paid…
A: Workings: Formula: Growth rate = ( Current year dividend - previous year dividend ) / previous year…
Q: Maurer, Inc., has an odd dividend policy. The company has just paid a dividend of $5 per share and…
A: given information initial dividend paid = $5 required rate of return = 14%
Q: HQZ Inc., has just paid a dividend of $4.9 per share and has announced that it will increase the…
A: INTRODUCTION: Current Divident = 4.90 Each year increase by = 2.36 Discount rate = 9.43% Current…
Q: eta Company has paid the following dividends during the past four years of: Year DPS 2000 $2.3 2001…
A: We have to find the growth rate and then have to calculate the expected price for the Year end 2003.
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A: Initial Stock Price at time of purchase = 50 Stock Price at beginning of current year = 56 Dividend…
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A: Formula: Dividend Yield = Annual dividend/Price of stock
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A: Given Data: Dividend Just Paid = $6 Dividend Growing each year =$ 4 Required return = 11%
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A: a) Computation of cost of equity without floatation adjustment and cost of new equity:
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A:
Q: The Castle Company recently reported net profits after taxes of $14.7 million. It has 2.5 million…
A: Net profit after tax=$14.7millionCommon stock outstanding=2.5millionPreferred…
Q: The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to…
A: Under DCF approach Cost of equity = Ke = D1P0+ g Where, D1 = Dividend of the next year =$2.52 P0 =…
Q: Hank Corp.'s common stock currently sells for $53 per share. The most recent dividend (Do) was…
A: Current stock price =$53 Current dividend =$2.48 Growth rate=7%
Q: Suppose Stark Ltd. just issued a dividend of $2.59 per share on its common stock. The company paid…
A: Formula: Growth rate = ( Current year dividend - previous year dividend ) / Previous year dividend.
Q: X-Ray Inc. recently paid its annual dividend of $4.80, and reported an ROE of 5%. The firm pays out…
A: given, d0= $4.80 roe= 5% dividend payout = 50% r=7%
Q: Big Oil, Inc. has a preferred stock outstanding that pays a $7 annual dividend. If investors’…
A: Market value of preferred shares can be calculated as below with $7 as the annual dividend and 10%…
Q: The Cricket Co. just paid a dividend of $1.55 per share on its stock. The dividends are expected to…
A: Value of the stock refers to the price at which the stock trades in the market. The stock price is…
Q: Suppose Wacken, Limited, just issued a dividend of $2.73 per share on its common stock. The company…
A: The formula used is shown: Here, Re is the cost of equity g is the growth rate
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- The Stopperside Wardrobe Co. Just paid a dividend of $1.69 per share on Its stock. The dividends are expected to grow at a constant rate of 7.2% per year indefinitely. If Investors require an 12.2% return on The Stopperside Wardrobe Co. stock, answer the following: (Do not round Intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) What is the current price? Current price $ What will the price be in three years? Stock price in three years What will the price be in 15 years? Stock price in 15 years $Pharoah, Inc., paid a dividend of $4.25 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 17.0 percent, what is the current value of the stock? (Round answer to 2 decimal places, e.g. 15.25.) Current valueHeavy Rain Corporation just paid a dividend of $3.72 per share, and the firm is expected to experience constant growth of 5.18% over the foreseeable future. The common stock is currently selling for $60.89 per share. What is Heavy Rain's cost of retained earnings using the Gordon Model (DDM) approach? Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box) Your Answer: Answer units
- The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $26.75 per share; its last dividend was $2.00; and it will pay a $2.08 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % b. If the firm's beta is 1.5, the risk-free rate is 4%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places. % c. If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what will be rg? Use the judgmental risk premium of 4% in your calculations. Round your answer to two decimal places. d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do not round…Nynet, Inc., paid a dividend of $4.09 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 16.0 percent, what is the current value of the stock? (Round answer to 2 decimal places, e.g. 15.25.) Current value $_________The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 5% per year. Callahan's common stock currently sells for $28.25 per share; its last dividend was $1.60; and it will pay a $1.68 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.____% If the firm's beta is 1.8, the risk-free rate is 5%, and the average return on the market is 12%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places.____% If the firm's bonds earn a return of 9%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places.____% If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of…
- BioScience Inc. will pay a common stock dividend of $3.55 at the end of the year (D1). The required return on common stock (Ke) is 20 percent. The firm has a constant growth rate (g) of 10 percent. Compute the current price of the stock (P0). (Do not round intermediate calculations. Round your answer to 2 decimal places.)Fleur Corp.'s common stock currently sells for $49 per share. The dividend one year from now is expected to be $3.1, and the expected growth rate in dividends per year is 8%. The cost of common equity, RE, is ____%. Do not round any intermediate work, but round your final answer to 2 decimal places (example: enter 12.34 for 12.34%). Do not enter the % sign.The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 8% per year. Callahan's common stock currently sells for $22.75 per share; its last dividend was $2.00; and it will pay a $2.16 dividend at the end of the current year. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. __ % If the firm's beta is 1.5, the risk-free rate is 3%, and the average return on the market is 13%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places. __ % If the firm's bonds earn a return of 11%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the judgmental risk premium of 4% in your calculations. Round your answer to two decimal places. ___ % If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost of common equity? Do…
- The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to grow 4% per year. Callahan's common stock currently sells for $26.75 per share; its last dividend was $2.50; and it will pay a $2.60 dividend at the end of the current year. a. Using the DCF approach, what is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % b. If the firm's beta is 2.0, the risk-free rate is 8%, and the average return on the market is 14%, what will be the firm's cost of common equity using the CAPM approach? Round your answer to two decimal places. % c. If the firm's bonds earn a return of 12%, based on the bond-yield-plus-risk-premium approach, what will be rs? Use the midpoint of the risk premium range discussed in Section 10-5 in your calculations. Round your answer to two decimal places. % d. If you have equal confidence in the inputs used for the three approaches, what is your estimate of Callahan's cost…The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.90 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. Investors require a return of 10 percent on the company's stock. a. What is the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the stock price be in 3 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What will the stock price be in 5 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Current price b. Stock price in 3 years c. Stock price in 5 yearsMargoles Publishing recently completed its IPO. The stock was offered at $14.00 per share. On the first day of trading, the stock closed at $19.00 per share. a. What was the initial return on Margoles? b. Who benefited from this underpricing? Who lost, and why? a. What was the initial return on Margoles? The initial return was 1%. (Round to one decimal place.) b. Who benefited from this underpricing? (Select the best choice below.) OA. Owners of other shares outstanding (not part of the IPO) and underwriters. O B. The company and underwriters. O C. Investors who bought shares at the IPO price of $14.00/share and investment banks (indirectly from future business) O D. The company and owners of other shares outstanding (not part of the IPO). Who lost? (Select the best choice below.) 0 A. Owners of other shares outstanding (part of the IPO) O B. Owners of other shares outstanding (not part of the IPO) O C. Both of the above. 0 D. Investors who bought shares at the IPO price of…