NoGrowth Corporation currently pays a dividend of $2.24 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 14% per year?
Q: NoGrowth Industries presently pays an annual dividend of $1.00 per share and it is expected that…
A: Annual dividend = $ 1.00 Cost of equity = 10%
Q: Halliford Corporation expects ts earnings from that point onward. Each year, retained earnings will…
A:
Q: Von Bora Corporation (VBC) is expected to pay a $2.25 dividend at the end of this year. If you…
A: value of stock can be found out by constant growth dividend discount model.
Q: Poulter Corporation will pay a dividend of $4.10 per share next year. The company pledges to…
A: Formula for calculation of current stock value :- Price = D1/(r - g)
Q: Rylan Industries is expected to pay a dividend of $5.90 year for the next four years. If the…
A: Annual Dividend = $5.90 Current Price = $31.85 Annual Period = 4 years Annual Cost of Capital =…
Q: Chittenden Enterprises has 632 million shares outstanding. It expects earnings at the end of the…
A: Current share price can be calculated by using dividend discount model. In this model present value…
Q: NoGrowth Corporation currently pays a dividend of $2.08 per year, and it will continue to pay this…
A: Cost of Equity: It is the cost of the company while raising finance by issuing equity. It is…
Q: Little Oil has outstanding 1 million shares with a total market value of $27 million. The firm is…
A: a) Total market capitalization = $27 million, Number of shares issued = 1 million Price per share =…
Q: DFB, Inc. expects earnings next year of $4.73 per share, and it plans to pay a $3.09 dividend to…
A: According to Gordon’s growth model, it is assumed that the market price of a share is calculated as…
Q: how much will you pay for the company’s share?
A: Stock: Stock represents the number of shares owned by the investors (individual or group) in a…
Q: NoGrowth Corporation currently pays a dividend of $0.44 per quarter, and it will continue to pay…
A: Annual dividend (D) = $0.44 Cost of capital (r) = 15.5%
Q: NoGrowth Corporation currently pays a dividend of $0.56 per quarter, and it will continue to pay…
A: Given: Dividend = $0.56 Equity cost of capital = 13.6%
Q: Suppose Acap Corporation will pay a dividend of $2.80 per share at the end of this year and a…
A: Dividend for year 1(D1) = $2.80 Dividend for year 2(D2) = $3.00 Stock Price after 2 years(P2) = $52…
Q: Oregano Inc. estimates that this year’s earnings will be $75 million. There are 12 million shares…
A: A dividend is a payment made to shareholders by publicly traded firms, and it is derived from the…
Q: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.6 million and…
A: given, forever dividend = $9.2 million r=13.3% outstanding shares = 4.8 million
Q: DFB, Inc. expects earnings next year of $5.99 per share, and it plans to pay a $4.36 dividend to…
A: EPS1 = $5.99 D1 = $4.36 Let p = Payout ratio ROE = 14.8%
Q: KMS corporation has assets of $650 million, $130 million of which are cash. It has debt of $162.5…
A: Perpetuity is an annuity in which the periodic payments or receipts begin on a fixed date and…
Q: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.6 million and…
A: Total amount to be spent on dividends and repurchase forever (A) = $9.2 million Cost of capital (r)…
Q: AFW Industries has 182 million shares outstanding and expects earnings at the end of this year of…
A: We need to use constant growth model to calculate stock price. The formula is Share Price(P0) =D1r-g…
Q: Krell Industries has a share price of $21.88 today. If Krell is expected to pay a dividend of…
A: The stock price which is the maximum price to be paid for share consists of dividends and terminal…
Q: Krell Industries has a share price of $21.52 today. If Krell is expected to pay a dividend of $0.67…
A: Current stock price (P0) = $21.52 Expected next dividend (D1) = $0.67 Stock price at the end of…
Q: Evelyn Incorporated is expected to pay a dividend at year end of D1 = $2.25. This dividend is…
A: Before tax cost of debt =7.50% After tax cost of debt = Before tax cost of debt * (1-tax rate) After…
Q: The current year's profits of Ferro Inc. is 1200 and the next year's profits are estimated as 1400…
A: Given, current Profit = 1200 next year profit = 1400 growth rate = (next year profit / current year…
Q: NoGrowth Corporation currently pays a dividend of $2 per year, and it will continue to pay this…
A: Cost of equity: The cost of equity is the minimum rate of return that an investor expects while…
Q: Metroplex Corporation will pay a $3.04 per share dividend next year. The company pledges to increase…
A: Given Dividend of next year - D1 = 3.04, return - k = 11% growth - g = 3.8% infinitely
Q: Krell Industries has a share price of $22.53 today. If Krell is expected to pay a dividend of $0.92…
A: According to the values provided in the question: p0=$22.53d1=$0.92p1=$24.43
Q: dney Ltd. was paid a dividend of $3.97 last year. If the company's growth in dividends is expected…
A: The given problem can be solved using constant growth dividend model.
Q: Ali Inc. expects to generate free-cash of $330000 per year forever. If the firm's cost of capital is…
A: Disclaimer: Since you have asked multiple questions, we will solve the first question for you. If…
Q: Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.50 next year. The growth…
A: The share price is the current market price of the share. It is the price of the share at any…
Q: NoGrowth Corporation currently pays a dividend of $2.00 per year, and it will continue to pay this…
A: Cost of Equity: It is the cost of the company while raising finance by issuing equity. It is…
Q: AFW Industries has 201 million shares outstanding and expects earnings at the end of this year of…
A: The mathematical equation for computing the value is: Values in $million
Q: Avril Synchronistics will pay a dividend of $1.50 per share this year. It is expected that this…
A: Computation of current value of share:Current value of share is $13.64.
Q: what is Krell’s dividend yield and equity cost of capital?
A: Information Provided: Current price = $22 Dividend = $0.88 Expected stock price = $23.54
Q: Zoom Enterprises expects that one year from now it will pay a total dividend of $5.1 million and…
A: Repurchase of shares from investors and paying dividends to investors will have same effect to…
Q: ABC Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is expected to…
A: Computation:
Q: a) Calculate the price per share of Mitsui Ltd immediately before the repurchase announcement. b)…
A: Share price is the price at which share can be purchased from the stock market. Shareholders try to…
Q: Unheardof, Ic., has just paid a dividend of $5 per share. This dividend is anticipated to increase…
A: In the given question we need to compute the market value of a share of the company with following…
Q: Von Bora Corporation (VBC) is expected to pay a $4.00 dividend at the end of this year. If you…
A: Value of a share of VBS stock = Dividend / (Required return - Growth rate) Dividend = $4.00 Required…
Q: ABC Inc. is expected to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is expected to…
A: WACC = (Ke * We) + (Kd * Wd) Ke = Cost of equity Kd = Cost of debt We = Weight of equity Wd = Weight…
Q: Pimento Inc. estimates that this year’s earnings will be $75 million. There are 12 million shares…
A: Given: Earnings = $75 million Shares outstanding = 12 Million Price = $27.50
Q: Cullumber Wok Co. is expected to pay a dividend of $1.70 one year from today on its common shares.…
A: Expected Dividend = $1.70 Growth Rate = 5% Current Stock Price =$17.00
Q: ABC Industries will pay a dividend of $1 next year on their common stock. The company predicts that…
A: The dividend discount model is the model of stock valuation that assumes that the stock price of a…
Q: NoGrowth Corporation currently pays a dividend of $1.72 per year, and it will continue to pay this…
A: Solution:- Companies pay a part of their earnings to shareholders, which is known as dividend.…
Q: FECORP, will pay a dividend of $5.10 per share next year. The company pledges to increase its…
A: Dividend payable next year =D1=$5.10 Growth rate of dividend = g= 4.2% per year Expected return /…
Q: Summit Systems will pay a dividend of $1.50 this year. If you expect Summit’s dividend to grow by 6%…
A: The below expression can be used to calculate price per share:
NoGrowth Corporation currently pays a dividend of
per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is
per year?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- NoGrowth Corporation currently pays a dividend of $2 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 15% per year?NoGrowth Corporation currently pays a dividend of $1.72 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 12% per year?NoGrowth Corporation currently pays a dividend of $2.08 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 14% per year? The price per share if its equity cost of capital is 14% per year is $_______ (Round to the nearest cent.)
- BM expects to pay a dividend of $8 next year and expects these dividends to grow at 3.15% a year. The price of IBM is $67 per share. What is IBM's cost of equity capital?Gremlin Industries will pay a dividend of $1.65 per share this year. It is expected that this dividend will grow by 5% per year each year in the future. The current price of Gremlin's stock is $22.20 per share. What is Gremlin's equity cost of capital?NoGrowth Corporation currently pays a dividend of $0.59 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 19.5%?
- NoGrowth Corporation currently pays a dividend of $2.00 per year, and it will continue to pay this dividend forever. What is the price per share if its equity cost of capital is 15% per year? The price per share if its equity cost of capital is 15% per y ear is $_______ (Round to the nearest cent.)Summit Systems will pay a dividend of $1.49 one year from now. If you expect Summit's dividend to grow by 6.9% per year, what is its price per share if its equity cost of capital is 11.8% ?Anle Corporation has a current price of $20, is expected to pay a dividend of $1 in one year, and its expected price right after paying that dividend is $22. What is Anle’s expected dividend yield? What is Anle’s expected capital gain rate? What is Anle’s equity cost of capital?
- Summit Systems will pay a dividend of $1.50 this year. If you expect Summit’s dividend to grow by 6% per year, what is its price per share if its equity cost of capital is 11%?NoGrowth Corporation currently pays a dividend of $0.45 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 17.49% ?Anle Corporation has a current price of $13, is expected to pay a dividend of $2 in one year, and its expected price right after paying that dividend is $22. What is Anle's expected dividend yield? (Round to two decimalplaces.) What is Anle's expected capital gain rate? (Round to two decimalplaces.) What is Anle's equity cost of capital? (Round to two decimalplaces.)