HighGrowth Company has a stock price of $22. The firm will pay a dividend next year of $0.91, and its dividend is expected to grow at a rate of 3.6% per year thereafter. What is your estimate of HighGrowth's cost of equity capital?
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- Calculation of gL and EPS Spencer Suppliess stock is currently selling for 60 a share. The firm is expected to earn 5.40 per share this year and to pay a year-end dividend of 3.60. a. If investors require a 9% return, what rate of growth must be expected for Spencer? b. If Spencer reinvests earnings in projects with average returns equal to the stocks expected rate of return, then what will be next years EPS? [Hint: gL = ROE Retention ratio.)Problem . Valuation of equity X Company paid dividends of 2.12 in 2022. The dividends are expected to grow at 5%per year in the long term and the company has a cost of equity of 9.40%. What is the value per equity share?Question content area top Part 1 Assume Gillette Corporation will pay an annual dividend of $ 0.66 one year from now. Analysts expect this dividend to grow at 11.2 % per year thereafter until the fifth year. Thereafter, growth will level off at 1.6 % per year. According to the DDM, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.3 % ? Question content area bottom Part 1 The value of Gillette's stock is $ enter your response here. (Round to the nearest cent.
- Expected Return A company's current stock price is $86.30 and it is likely to pay a $5.30 dividend next year. Since analysts estimate the company will have a 12% growth rate, what is its expected return? Multiple Choice A. 5.94% B. 18.14% C. 12.00% D. 6.14%k Assume Highline Company has just paid an annual dividend of $0.96. Analysts are predicting an 11.1% 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 9.4% 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.)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.)
- QUESTION ONE Bahrain Gas Company dividend per share next year is expected to be 3.500. An analysis of the company's dividends over the past 5 years reflects an average growth rate of 5.0% ра. (i) If you can earn 13% pa on similar-risk investments, what would you be willing to pay per BPP share? (ii) Another investor requires a return of 10% pa, what would they be willing to pay per BPP share? (iii) Compare your findings in part (i) and (ii). What is the impact of changing risk on the value of a share?Excel Online Structured Activity: Constant growth You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.25 a share at the end of the year (D₁ = $2.25) and has a beta of 0.9. The risk-free rate is 3.9%, and the market risk premium is 5.0%. Justus currently sells for $43.00 a share, and its dividend is expected to grow at some constant rate, g. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. ☑ Open spreadsheet Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is P3?) Round your answer to two decimal places. Do not round your intermediate calculations.Gillette Corporation will pay an annual dividend of $ 0.66 one year from now. Analysts expect this dividend to grow at 12.8% per year thereafter until the 5. th year. Thereafter, growth will level off at 2.4% 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%? Question content area bottom Part 1 The value of a Gillette share is $ enter your response here. (Round to the nearest cent.)
- Q#: Suppose a company estimates following one year returns from investing in the common stock of Leopard Corporation: Possibility of Occurrence .1 .25 .1 .15 .1 .2 .1 Possible returns 15% 30% 15% -10% -5% 20% 10% Required: Calculate Expected return & Risk {Standard Deviation)Calculation of gL and EPS Spencer Supplies' stock is currently selling for $60 a share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $1.80. If investors require a 9% return, what rate of growth must be expected for Spencer? Round your answer to the nearest whole number. % If Spencer reinvests earnings in projects with average returns equal to the stock's expected rate of return, then what will be next year's EPS? (Hint: gL = ROE × Retention ratio.) Do not round intermediate calculations. Round your answer to the nearest cent. $Excel Online Structured Activity: Constant growth You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.25 a share at the end of the year (D1 = $2.25) and has a beta of 0.9. The risk-free rate is 5.0%, and the market risk premium is 4.5%. Justus currently sells for $35.00 a share, and its dividend is expected to grow at some constant rate, g. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is ?) Round your answer to two decimal places. Do not round your intermediate calculations. $ ___________.
