Management of Blossom, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, and 22 percent. Management then expects the company to grow at a constant rate of 9 percent forever. Te company paid a dividend of $1.25 last week. If the required return is 15 percent, what is the value of this stock. (Round to 2 decimal places)
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- Management of Sandhill, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, and 22 percent. Management then expects the company to grow at a constant rate of 9 percent forever. The company paid a dividend of $2.12 last week. If the required rate of return is 16 percent, what is the value of this stock? (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.20.) Value of stock 69 52.64Management of Crane, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, and 22 percent. Management then expects the company to grow at a constant rate of 9 percent forever. The company paid a dividend of $1.50 last week. If the required rate of return is 22 percent, what is the value of this stock? Round intermediate calculations and final answer to 2 decimal placesSunland Corp. is expected to grow rapidly at a rate of 35 percent for the next seven years. The company's first dividend, to be paid three years from now, will be $5. After seven years, the company (and the dividends it pays) will grow at a rate of 8.40 percent. What is the value of Sunland stock with a required rate of return of 14 percent? (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.20.)
- Blossom Manufacturing Company has been growing at a rate of 6 percent for the past two years, and the CEO expects the company to continue to grow at this rate for the next several years. The company paid a dividend of $1.50 this year. If your required rate of return is 12 percent, what is the maximum price that you would be willing to pay for this company’s stock? (Round intermediate calculation and final answer to 2 decimal places, e.g. 15.25.) Maximum price $enter the maximum price of the stock rounded to 2 decimal placesYour answer is incorrect. Management of Oriole, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, and 22 percent. Management then expects the company to grow at a constant rate of 9 percent forever. The company paid a dividend of $1.70 last week. If the required rate of return is 20 percent, what is the value of this stock? (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.20.) Value of stock $You are appointed to value a biotech company's ordinary shares. You forecast the following growth rates of earnings for the next five years: 15%, 20%, 22%, 17%, and 10%. You expect the company to settle to a constant growth rate of 4% per annum from year six onwards. The company projects that it will start to pay annual dividend in year two. The first dividend payment is expected to be $2.50 per share and will be paid at the end of year two. Assume that the dividend payout ratio stays constant. What is the current value of the share if the required return is 15% per annum?
- Universal Exports is expected to pay the following dividends over the next four years: $8, $4, $2, and $2. Afterwards the company is expected to maintain a constant 4 percent growth rate in dividends. If the required return is 15 percent, what is the maximum that you would be willing to pay for a stock of Universal today?Carla Vista Corp. is expected to grow rapidly at a rate of 35 percent for the next seven years. The company's first dividend, to be paid three years from now, will be $5. After seven years, the company (and the dividends it pays) will grow at a rate of 9.4 percent. What is the value of Carla Vista stock with a required rate of return of 14 percent? (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.20.) value of stock___Your answer is incorrect. Management of Crane, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent, and 22 percent. Management then expects the company to grow at a constant rate of 9 percent forever. The company paid a dividend of $1.40 last week. If the required rate of return is 17 percent, what is the value of this stock? (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.20.) Value of stock $.
- Sandhill Departmental Stores management has forecasted a growth rate of 40 percent for the next two years, followed by growth rates of 25 percent and 20 percent for the following two years. It then expects growth to stabilize at a constant rate of 7.5 percent forever. The firm paid a dividend of $3.90 recently. If the required rate of return is 14 percent, what is the current value of Sandhill's stock? (Round all intermediate calculations and final answer to 2 decimal places, e.g. 15.25.) Current value $Type your answer hereRiker Departmental Stores management has forecasted a growth rate of 40 percent for the next two years, followed by growth rates of 25 percent and 20 percent for the following two years. It then expects growth to stabilize at a constant rate of 7.5 percent forever. The firm paid a dividend of $3.09 recently. If the required rate of return is 16 percent, what is the current value of Riker's stock? (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.25.) Current value $Blossom Departmental Stores management has forecasted a growth rate of 40 percent for the next two years,followed by growthrates of 25 percent and 20 percent for the following two years. It then expects growth to stabilize at a constant rate of 7.5 percentforever.The firm paid a dividend of $3.00 recently. If the required rate of return is 15 percent, what is the current value of Blossom'sstock? (Round all intermediate calculations and final answer to 2 decimal places,e.g.15.25.) Current value = ?