Aspris International just paid an annual dividend of $1.80. Analysts expect this dividend to grow at...
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Aspris International just paid an annual dividend of $1.80. Analysts expect this dividend to grow at 7.30% until the end of year eight. Afterwards, its long-run growth rate will reach 3.80% thereafter. What is the price of Aspris International stock if the firm's equity cost of capital is 12.50%. 1. What is the value of the dividend at t=1? $ (Please round to two decimal places) 2. What is the present value of the first eight dividends? $ (Please round to two decimal places) 3. What is the value of the dividend at t=9? $ (Please round to two decimal places) 4. What is the value of the stock? (Please round to two decimal places) Aspris International just paid an annual dividend of $1.80. Analysts expect this dividend to grow at 7.30% until the end of year eight. Afterwards, its long-run growth rate will reach 3.80% thereafter. What is the price of Aspris International stock if the firm's equity cost of capital is 12.50%. 1. What is the value of the dividend at t=1? $ (Please round to two decimal places) 2. What is the present value of the first eight dividends? $ (Please round to two decimal places) 3. What is the value of the dividend at t=9? $ (Please round to two decimal places) 4. What is the value of the stock? (Please round to two decimal places)
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1 The value of the dividend at t1 is 180 2 The present value of the first ei... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
Posted Date:
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