Give typing answer with explanation and conclusion company's next annual dividend will be $12 and that dividends after one year will have a constant growth rate of 5%. If the required rate of return is 9%, then what should the stock price and dividend yield be?
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Give typing answer with explanation and conclusion
company's next annual dividend will be $12 and that dividends after one year will have a constant growth rate of 5%. If the required
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- Show Detailed Steps When Solving The Following Question: Gordon Growth Company is expected to pay a dividend of $4 next period, and dividends are expected to grow at 6% per year. The required return is 16%. What is the current price? What is the price expected to be in year 4?If the last dividend paid by Chemical Brothers Inc. was $1.25 and analysts expect these payments to increase 4% per year, what will the stock price be next year if the required return is 15%? Select one: O a. $12.29 O b. $11.82 O c. $31.25 O d. $12.78 O e. $23.11Suppose that X company expected to pay$1.05 dividends for the coming year and currently the company paid a dividend of $1, What is the value of the stock? If the required return is 10%. And the growth rate is expected to continue.
- Whizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and the investors require a return of 12%. i) Compute the current stock price for Whizcom Inc.ii) What would be the likely stock price in year 5?iii) What would be per annum rate of return implied by a change in prices from time 0 to time 5?Suppose a company is expected to pay a dividend of $3.97 next year. The dividend is expected to grow at 6.21% each year. If the stock is currently selling for $260.26, what is the required rate of return on the stock?You observe a stock price of $17. You expect a dividend growth rate of 5% and the next year's dividend was $1.70. What is the required return?A. 14.5%B. 15%C. 15.5%
- Whizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and the investors require a return of 12%. a) What would be the likely stock price in year 5? b) What would be per annum rate of return implied by a change in prices from time 0 to time 5?You are evaluating the stock of XYZ Corp. Suppose that the required rate of return for the firm is 20%. Suppose future dividends are expected to grow at 10% per year. The current stock price of the firm is $55. What is the expected dividend per share next year (D1)? a. $4.5 b. $4.0 c. $5.0 d. $5.5Provide detailed steps to solve the following question: Suppose a firm is expected to increase dividends by 20% in one year and by 15% in two years. After that, dividends will increase at a rate of 5% per year indefinitely. If the last dividend was $1 and the required return is 20%, What is the price of the stock?
- What is the value of Company X stock if the dividend next year will be $3 and is expected to grow at a rate of 4% forever if your required return is 9.08%Suppose your company is expected to grow at a constant rate of 7 percent long into the future. In addition, its dividend yield is expected to be 8 percent. If your company expects to pay a dividend equal to $1.22 per share at the end of the year, what is the value of your firm's stock? Round your answer to the nearest cent. $ _______Design a spreadsheet similar to the one below to compute the value of a variable growth rate firm over a five-year horizon. a. What is the value of the stock if the current dividend is $1.4, the first-stage growth is 14%, the second-stage growth is 7%, and the discount rate is 15%? b. What is the value of the stock if the current dividend is $1.4, the first-stage growth is 1%, the second-stage growth is 13%, and the discount rate is 14.0%? c. What is the value of the stock if the current dividend is $2.8, the first-stage growth is 14%, the second-stage growth is 7%, and the discount rate is 13%? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the value of the stock if the current dividend is $1.4, the first-stage growth is 1.4%, the second-stage growth is [a (7)%, and the discount rate is 14%? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Year 4 Year 5 Projected dividend Terminal price…
