A stock just paid a dividend of $2.26. The dividend is expected to grow at 27.43%...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A stock just paid a dividend of $2.26. The dividend is expected to grow at 27.43% for two years and then grow at 3.54% thereafter. The required return on the stock is 11.55%. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. The risk-free rate is 3.89% and the market risk premium is 8.59%. A stock with a B of 0.87 just paid a dividend of $1.10. The dividend is expected to grow at 23.16% for three years and then grow at 4.23% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. A stock just paid a dividend of $2.26. The dividend is expected to grow at 27.43% for two years and then grow at 3.54% thereafter. The required return on the stock is 11.55%. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. The risk-free rate is 3.89% and the market risk premium is 8.59%. A stock with a B of 0.87 just paid a dividend of $1.10. The dividend is expected to grow at 23.16% for three years and then grow at 4.23% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places.
Expert Answer:
Answer rating: 100% (QA)
Answer Explanation 1 D1226127431 28799 D2226127432 36698 P2D3Keg 366981... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
The Aldridge Co. is expected to grow at 6% into the indefinite future. Its latest annual dividend was $2.50. Treasury bills currently earn 7% and the S&P 500 yields 11%. a. What price should Aldridge...
-
The EPS is expected to grow at 30, 18, 12, and 9 percent, respectively for the first four years. After the fast growth for the first four years the growth slows down to 7 percent rate. The company is...
-
A stock just paid a dividend of D0 = $1.75. The required rate of return is rs=12.0%, and the constant growth rate is g=4.0%. What is the current stock price?
-
Neer Department Store uses the retail inventory method to estimate its monthly ending inventories. The following information is available for two of its departments at August 31, 2011. Sporting Goods...
-
Discuss what motivates hackers use to break into computer systems.
-
Jillian operates a sporting goods store in a rented location at a shopping mall. She is insured under a CGL policy with the following limits: A propane tank in the store exploded. Indicate the dollar...
-
A randomly oriented, short-fiber-reinforced composite plate having a central through-thickness crack of length \(2 a\) is subjected to a uniaxial stress \(\sigma\), as shown in Figure 9.1. If the...
-
The before-tax income for Lonnie Holdiman Co. for 2014 was $101,000 and $77,400 for 2015. However, the accountant noted that the following errors had been made: 1. Sales for 2014 included amounts of...
-
Direct Manufacturing Materials Purchased Direct Manufacturing Materials Used Direct Materials Price Variance (at time of purchase) Direct Materials Efficiency Variance Direct Manufacturing Labor...
-
Your friend, the crack circuit designer, has offered to redesign one of the units in the multicycle MIPS processor to be much faster. Using the delays from Table 7.6, which unit should she work on to...
-
A company has a process that results in 23,000 pounds of Product A that can be sold for $8 per pound. An alternative would be to process Product A further at a cost of $154,100 and then sell it for...
-
Statement 1: Businesses always want to sell their products at higher prices, this way they take in greater revenue. Statement 2: If wages go up on average then the workers, the people who earn the...
-
Find \(e^{\mathbf{A} t}\), where \(t\) is scalar, using a. The expm command. b. The inverse Laplace-transform approach. \(\mathbf{A}=\left[\begin{array}{lll}1 & 1 & 0 \\ 1 & 1 & 0 \\ 0 & 0 &...
-
Assume the same facts as in P3.11 with the exception that in this case, Company X exchanges replacement awards for the share-based payment awards of Company Y, for which employees had yet to render...
-
a. Solve the IVP. b. Confirm the result of (a) in MATLAB. \(\ddot{x}+3 \dot{x}+2 x=\sin \left(\frac{2}{3} t ight), x(0)=0, \dot{x}(0)=3\)
-
Why did grain prices fall in 2008? Draw a graph to show the short-run effect on an individual farmers economic profit. Big drops in prices for crops make it tough down on the farm Corn, soybean, and...
-
Explain and discuss sustainability reporting standards: GRI, SASB, CDP, and so on with relevant citations and references.
-
Write a paper about how diet relates to breast cancer in women study design to use: case control study purpose & rationale the purpose of this final project is to utilize the methods and...
-
At any particular time, home mortgage rates are determined by market forces, and individual borrowers cant do much about them. The length of time required to pay off a mortgage loan, however, varies...
-
Resolve the last problem assuming Work Station Inc. has an abandonment option at the end of the first year under which it will recover $5 million of the initial investment in year 2. What is the...
-
The interest rate outlook for Montrose Inc., a large, financially sound company, is reflected in the following information. The pure rate of interest is 4%. Inflation is expected to increase in the...
-
Consider a stochastic process such that the underlying security \(S\) follows the model: \[d S_{t}=\mu S_{t} d t+\sigma_{t} S_{t} d Z_{t}\] where \(Z\) is a standard Brownian motion. Suppose the...
-
Calculate the solution to the following SDE: \[d X_{t}=\alpha\left(m-X_{t} ight) d t+\sigma d B_{t}\] with \(X_{0}=x\). The process satisfying this equation is called the meanreverting...
-
If \(X_{t} \sim N\left(0, \sigma^{2} t ight)\) and \(Y_{t}=e^{X_{t}}\), calculate the pdf of \(Y_{t}\). Calculate \(\mathbf{E}\left[Y_{t} ight]\) and \(V\left(Y_{t} ight)\). Calculate the transition...
Study smarter with the SolutionInn App