Question: Hello i need help with these questions here. I appreciate any help you can give, I will be certain to leave a great review and
Hello i need help with these questions here. I appreciate any help you can give, I will be certain to leave a great review and sincerely appreciate you taking the time to help me.
7. Ovit, Inc. has preferred stock with a price of $20.00 and a dividend of $1.50 per year. What is its dividend yield? The dividend yield is %. (Round to one decimal place.) 8. Suppose Acap Corporation will pay a dividend of $2.86 per share at the end of this year and $3.07 per share next year. You expect Acap's stock price to be $51.29 in two years. Assume that Acap's equity cost of capital is 10.5%. a. What price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for two years? b. Suppose, instead, you plan to hold the stock for one year. For what price would you expect to be able to sell a share ofAcap stock in one year? 1:. Given your answer in part b, what price would you be willing to pay for a share of Acap stock today if you planned to hold the stock for one year? How does this prioe compare to your answer in part a? a. If you planned to hold the stock for two years, the prioe you would pay for a share of Acap stock today is $ . (Round to the nearest cent.) b. The prioe would you expect to be able to sell a share of Acap stock for in one year is $ . (Round to the nearest cent.) 0. Given your answer in part b, the price you would be willing to pay for a share of Acap stock today, if you planned to hold the stock for one year, is $ . (Round to the nearest cent.) When you compare your answer in part a to the answer in part (2, (Select the best choice below.) 0 A. the prioe in parta is more than $0.02 lower than the price in part c. O B. they are not comparable values. 0 C. the prioe in part a is the same (within $0.02) as the prioe in part c. O D. the prioe in part a is more than $0.02 higher than the price in part c. 9. Summit Systems will pay an annual dividend of $1 .68 this year. It you expect Summit's dividend to grow by 5.6% per year, what is its prioe per share it the rm's equity cost of capital is 10.2%? The price per share is 5 (Round to the nearest cent.) 10. Laurel Enterprises pays annual dividends, and the next dividend is expected to be in one year. Laurel expects earnings next year of $4.21 per share and has a 50% retention rate, which it plans to keep constant. Its equity cost of capital is 11%, which is also its expected return on new investment; this is expected to continue forever: What do you estimate the firm's current stock price to be? (Hint: its next dividend is due in one year.) The current stock price will be $ . (Round to the nearest cent.) 11. CX Enterprises has the following expected dividends: $1.01 in one year, $1.21 in two years, and $1.35 in three years. After that. its dividends are expected to grow at 4.3% per year forever (so that year four's dividend will be 4.3% more than $1.35 and so on). If CX's equity cost of capital is 12.4%, what is the current price of its stock? The price of the stock will be $ . (Round to the nearest cent.)
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