Valiant Corp. pays a dividend of $2.5 per share and is expected to pay this amount indefinitely. If the corporation's equity cost of capital is 11%, its stock price should be $_____. (round your answer to two decimal places)
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Valiant Corp. pays a dividend of $2.5 per share and is expected to pay this amount indefinitely. If the corporation's equity cost of capital is 11%, its stock price should be $_____. (round your answer to two decimal places)
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- 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.)(This question has three parts.) Von Bora Corporation is expected pay a dividend of $1.97 per share at the end of this year and a $2.35 per share at the end of the second year. Immediately after Von Bora pays the $2.35 per share dividend at the end of the second year, you expect Von Bora's stock price to be $22.00 per share. Von Bora's cost of equity capital is 12.0% (...) Question A: What is the highest price that you would be willing to pay today for a share of Von Bora stock if you plan to hold the stock for two years? Sper share (round to two decimal places) Question B: What is the highest price that you would be willing to pay today for a share of Von Bora stock if you plan to hold the stock for five years? Sper share (round to two decimal places) Question C: > At the end of the second year (e.g., at time t=2), immediately before Von Bora pays the $2.35 per share dividend, at what price would you expect shares of Von Bora's stock to be selling? Sper share (round to two decimal…(This question has three parts.) Von Bora Corporation is expected pay a dividend of $1.99 per share at the end of this year and a $2.37 per share at the end of the second year. Immediately after Von Bora pays the $2.37 per share dividend at the end of the second year, you expect Von Bora's stock price to be $22.00 per share. Von Bora's cost of equity capital is 11.0%. Question A: What is the highest price that you would be willing to pay today for a share of Von Bora stock if you plan to hold the stock for two years? $4 per share (round to two decimal places) Question B: What is the highest price that you would be willing to pay today for a share of Von Bora stock if you plan to hold the stock for five years? 2$ per share (round to two decimal places) At the end of the second year (e.g., at time t=2), immediately before Von Bora pays the $2.37 per share dividend, at what price would you expect shares of Von Bora's stock to be selling? Question C: $ per share (round to two decimal…
- (This question has three parts.) Von Bora Corporation is expected pay a dividend of $2.07 per share at the end of this year and a $2.34 per share at the end of the second year. Immediately after Von Bora pays the $2.34 per share dividend at the end of the second year, you expect Von Bora's stock price to be $22.00 per share. Von Bora's cost of equity capital is 10.0%. Question A: What is the highest price that you would be willing to pay today for a share of Von Bora stock you plan to hold the stock for two years? $ per share (round to two decimal places) Question B: What is the highest price that you would be willing to pay today for a share of Von Bora stock if you plan to hold the stock for five years? $ per share (round to two decimal places) Question C: At the end of the second year (e.g., at time t=2), immediately before Von Bora pays the $2.34 per share dividend, at what price would you expect shares of Von Bora's stock to be selling? |per share (round to two decimal places)Company A has a current stock price of S60 and is expected to pay a $2 dividend in one year, The equity cost of capital is 8.9%. What price would its stock be expected to sell for immediately after it pays the divldend? Note: Express youranswers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer.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.)
- Matilda Industries pays a dividend of $2.50 per share and is expected to pay this amount indefinitely. If Matilda's equity cost of capital is 12%, which of the following would be expected to be closest to Matilda's stock price? A. $12.50 B. $16.66 C. $20.83 D. $26.04Nogrowth Corporation currently pays a dividend of $0.43 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 11.48%? The stock price is $____ (Round to the nearest cent.)NoGrowth Corporation currently pays a dividend of $0.44 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 15.5%? The stock price is $______ (Round to the nearest cent.)
- Krell Industries has a share price of $22.53 today. If Krell is expected to pay a dividend of $0.92 this year and its stock price is expected to grow to $24.43 at the end of the year, what is Krell's dividend yield and equity cost of capital? The dividend yield is ________%.(Round to one decimal place.) The capital gain rate is ________%.(Round to one decimal place.) The total return is ________%. (Round to one decimal place.)Matilda Industries pays a dividend of $2.15 per share and is expected to pay this amount indefinitely. If Matilda's equity cost of capital is 10%, which of the following would be expected to be closest to Matilda's stock price?Red, Inc., Yellow Corp., and BlueCompany each will pay a dividend of $2.35 next year. The growth rate in dividendsfor all three companies is 5 percent. The required return for each company’s stockis 8 percent, 11 percent, and 14 percent, respectively. What is the stock price foreach company? What do you conclude about the relationship between the requiredreturn and the stock price?