You have just purchased a share for $29.33. The company is expected to pay a dividend of $0.57 per share in exactly one year. If you want to earn a 10.7% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?
Q: MG ltd just paid a dividend of $5.4 per share. investors expect the dividends to grow by 6.8% per…
A: In this we need to use constant growth rate formula to calculate fair value of equity.
Q: The owners of Sitty Inc need a return of 12% pa. The current performance of the firm leads to the…
A: 1 : The 12% return if the share price is 22/share = 22 * 12% = 2.64 That means on investing 22…
Q: You are told by your investment advisor that Laduma Co. is expected to earn R5 per share next year,…
A: Formulas:
Q: (This question has three parts.) Von Bora Corporation is expected pay a dividend of $1.99 per share…
A: Value per share can be calculated by discounting the future cash flows by relevant discount rate.…
Q: Assume Evco, has a current stock price of $51.07 and will pay a $1.95 dividend in one year, its…
A: Current price = present value of next dividend + present value of sale price of stock
Q: Eastern Electric currently pays a dividend of $1.64 per share and sells for $27 a share. a. If…
A:
Q: Summit Systems will pay a dividend of $1.48 this year. If you expect Summit's dividend to grow by…
A: Expected dividend (D1) = $1.48 Growth rate (g) = 5.3% Cost of capital (r) = 10.7%
Q: You just purchased a share of SPCC for $95. You expect to receive a dividend of $7 in one year. If…
A: Total return includes dividend yield and capital gain yield
Q: A mature manufacturing firm just paid a dividend of $588 but management expects to reduce the payout…
A: Introudction : Dividend = 5.88 Growth rate reduced = 4.32% required return = 8.46% as per the above…
Q: Welders Limited has just paid a cash dividend of $4.00 per share. The required return on the stock…
A: In this we need to use constant growth model.
Q: You want to purchase some share of JJ Farms stock but need a rate of return of 17.5 percent to…
A: If the company pays consistent dividend per year then the share value will be computed by dividing…
Q: Six months ago, you purchased 1,400 shares of ABC stock for $21.33 a share. You have received…
A: Given: Number of shares = 1,400 Purchase price = $21.33 Sale price = $24.47 Dividend = $0.6
Q: Ground Chuck Processing just paid its annual dividend of $1.25 per share. The firm recently…
A: Dividend paid = 1.25 Constant growth in dividends = 3% Required Return = 11.50%
Q: Rylan Industries is expected to pay a dividend of $5.80 year for the next four years. If the current…
A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…
Q: ow much are you willing to pay for one share of Group stock if the company just paid an OMR 0.95…
A:
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: Sunland Inc.’s common shares currently sell for $35 each. The firm’s management believes that its…
A: The cost of equity is the return an investor requires by investing in the equity shares of a…
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: You purchased a share of a company five years ago for $75 per share and the current price is $80 per…
A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…
Q: Sinar Harapan Berhad just paid a dividend of RM3.20 per share yesterday. The financial analyst has…
A: The question is related to Dividend discount growth model. The price of share will be calculated…
Q: You just purchased a share of Northstar Sports for $104.82. You expect to receive a dividend of…
A: It is given that :current stock price - $104.82 Dividend (next yr)- $5.05 Price in 1 yr - $106.88
Q: Masetti Company’s stock has a required rate of return of 11.50%, and it sells for $25.00 per share.…
A: Given Data: Required rate of return = 11.50% Selling price of share = $25 per share growth rate =…
Q: ou expect a share of stock to pay dividends of $3 in one year. After that dividends are expected to…
A: Required rate of return (Re) = 12% Growth rate for Year 1 and Year 2 = 10% Growth rate from Year 3 =…
Q: XYZ Inc’s most recent dividend was $20 per share. Dividends are expected to grow at an 9% annual…
A: Recent Dividend = 20 Growth rate = 9% Required rate of return = 15% Using Constant Growth Model,…
Q: Tresnan Brothers is expected to pay a $1.80 per share dividend at the end of the year (i.e., D1 =…
A: Current share value : it means current price of share at which share is currently trading ( buying…
Q: If you buy Disney stock at $85/ share and sell it for $90/ share and they pay a $1 dividend during…
A: Total Return - it means total earning on any security held for the time being, whether it is…
Q: A company with a share price of £5.50 and 500,000 shares plans to undertake an investment project…
A: To find out the formula of new share price, we need to apply the formula of dividend valuation…
Q: Swallow shares are currently selling for $29.80 and the company recently paid a dividend of $0.80…
A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…
Q: Shatin Intl. has 10.3 million shares, an equity cost of capital of 12.6% and is expected to pay a…
A: Total Stock Value = (Future value of total dividends + repurchasing of stocks) / equity cost of…
Q: Matilda Industries pays a dividend of $2.15 per share and is expected to pay this amount…
A: The value of the stock can be calculated by dividing cost of capital from the dividends per share if…
Q: Abel, Inc. just paid a dividend of $3.0 per share and you think they will continue to pay $3.0 per…
A: Since there is no growth rate that is no growth in dividend price of stock = Dividend / Cost of…
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: Last year Artworks, Inc. paid a dividend of $1.75. You anticipate that the company’s growth rate is…
A: Formula:
Q: Veloo has just bought the common stock of XYZ company. The company expects to grow at the following…
A: Expected dividend year 1 = Dividend year 0 * (1+g1) Expected dividend year 2 = Dividend year 1 *…
Q: AirMas Airlines will pay a RM4 dividend next year on its common stock, which is currently selling at…
A: The dividend discount model is the model of stock valuation that assumes that the stock price of a…
Q: William Brown is interested in purchasing the common stock of Oriole, Inc., which is currently…
A: Stocks are the units of the capital of a company and are also referred to as shares of the company…
Q: What is your total percentage return on this investment? What is your total dollar return on this…
A: The expected return of investment refers to the return that is anticipated on an investment.…
Q: The Baron Basketball Company (BBC) earned $10 a share last year and paid a dividendof $6 a share.…
A: Calculation of Current Price, Amount Paid for BBC Stock and Amount to Pay for the Stock:The current…
Q: Healthy Foods just paid its annual dividend of $1.62 a share. The firm recently announced that all…
A: Dividend discount model is a security valuation method which is used to forecast or predict the…
Q: A company with a share price of £5.50 and 500,000 shares plans to undertake an investment project…
A: GIVEN, D1=25pg=7%r=11%investment share price = 5.5shares = 500,000
Q: ou just purchased a share of SPCC for $101.You expect to receive a dividend of $6 in one year. If…
A: Dividend yield = dividend / current price
Q: (This question has three parts.) Von Bora Corporation is expected pay a dividend of $2.07 per share…
A: Given: Von Bora expected dividend paid is $2.07 per share at the end of the year. $2.34 per share at…
Q: You are told by your investment advisor that Ladumo Co. is expected to earn R5 per share next year,…
A: Calculation of value of the stock: Answer: Total value of stock is R47.33
Q: Anderson Motors, Inc. has just set the company dividend policy at $0.60 per year. The company…
A: Stock price = Annual dividend for annuity / Rate of return
Q: Home Company paid an annual dividend of RM0.90 per share this year. The company expects that the…
A: The Supernormal Growth Model is the model in which the value of the stock is measured through its…
Q: Our company, which was founded 10 years ago, has allocated 10,000 shares to investors at 1 TL…
A: Note: It is a situation where multiple sub-parts have been asked, so we are allowed to solve the…
Q: Wichita Realty Trust is expected to pay a modest dividend of $1.00/share for two years and then…
A: Given information: Rate of return is 10% Dividend for first two years is $1.00 Dividend for next…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- You have just purchased a share of stock for $20.29.The company is expected to pay a dividend of $0.52 per share in exactly one year. If you want to earn a 9.1% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $_______.(Round to the nearest cent.)You have just purchased a share of stock for $21.11. The company is expected to pay a dividend of $0.53 per share in exactly one year. If you want to earn a 10.2% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?You have just purchased a share of stock for $ 21.41. The company is expected to pay a dividend of $0.72 per share in exactly one year. If you want to earn a 9.4% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?
- Please use Excel to solve: You have just purchased a share of stock for $20. The company is expected to pay a dividend of $0.50 per share in exactly one year. If you want to earn a 10% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?You have just purchased a share of stock for $ 21.41. The company is expected to pay a dividend of $0.72 per share in exactly one year. If you want to earn a 9.4% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $________? (Round to nearest cent)You have just purchased a share of stock for $18.85. The company is expected to pay a dividend of $0.71 per share in exactly one year. If you want to earn a 9.1% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $. (Round to the nearest cent.) C
- You have just purchased a share of stock for $21.73. The company is expected to pay a dividend of $0.62 per share in exactly one year. If you want to earn a 10.5% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $ nearest cent.) (Round to theSuppose you bought XYZ stock 1 year ago for $6.54 per share and sell it at $2.79. You also pay a commission of $0.35 per share on your sale. What is the total return on your investment? The total return is %?You just purchased a share of SPCC for $95. You expect to receive a dividend of $7 in one year. If you expect the price after the dividend is paid to be $115, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate? The total return you will have earned over the year is _____%. (Round to two decimal places.) Your dividend yield will be ____%. (Round to two decimal places.) Your capital gain rate will be _____%. (Round to two decimal places.)
- You expect a share of EconNews.Com to sell for $69 a year from now. If you are willing to pay $70.09 for one share of the stock today, and you require a return of 7 percent, what dividend payment must you expect to receive from the stock?You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $65.74 for one share of the stock today, and you assume the share is riskless but require a return of 8 percent, what dividend payment must you expect to receive from the stock?You are considering the purchase of Ahlecs Company stock. You anticipate that the company will pay dividend of P2.25 per share next year and P2.50 per share the followiing year. You believe that you can sell the stock for P18.50 per share two years from now. If your required rate of return is 12.5%, what is the maximum price that would pay for a share?