Question: please don't use excel formula 1) Industries will pay a regular dividend of $1.30 per share for each of the next four years. At the

please don't use excel formula

1) Industries will pay a regular dividend of $1.30 per share for each of the next four years. At the end of the four years, the company will also pay out a 544 per share liquidating dividend, and the company will cease operations of the discount rate is 7 percent, what is the current value of the company's stock? (Do not round intermediate calculations. Round your answer to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Question 1 (of 4) value: 25.00 points Problem 6-2 JJ Industries will pay a regular dividend of $1.30 per share for each of the next four years. At the end of four years, the company will also pay out...

JJ Industries will pay a regular dividend of $1.30 per share for each of the next four years. At the end of the four years, the company will also pay out a $44 per share liquidating dividend, and the...

JJ Industries will pay a regular dividend of $1.30 per share for each of the next four years. At the end of four years, the company will also pay out a liquidating dividend. If the discount rate is 7...

Please show work if possible. DEF Industries will pay a regular dividend of $3.35 per share for each of the next 5 years. At the end of the 5 years, the company will also pay out a $28 per share...

Q 3 ( a ) CJ Industries will pay a regular dividend of RM 3 . 5 0 per share for each of the next three years. At the end of the three years, the company will also pay out a RM 4 0 per share...

Question 1 2 points Save an Industries will pay a regular dividend of 24 per share for each of the next four years. At the end of the four years, the company will also pay out a liquidating dividend...

please answer Q 2 which refers too Q1. i have listed the "Answer" but do not understand the Liquidating Discount part of the equation. please show work. 1. Dividend Valuation (LO1, CFA6) JJ...

a).Red sea industries will pay a regular dividend of $1.9 per share for the next four years. At the end of the four year, the company will also pay out a $40 per share liquidating dividend, the...

What is the basic principle behind dividend discount model? Why do growth stocks tend to have higher P/E ratios than value stocks? If a firm has no dividend and has negative earnings, which valuation...

True or false? As the price of oranges rises, the demand for oranges falls, ceteris paribus. Explain your answer.

When Bank RI or any other bank assesses whether a business is creditworthy and capable of repaying a long- or short-term debt obligation, one of the first things they consider is the movement of...

How does a flexible budget change the incentives of managers held responsible for meeting the flexible budget as compared to the incentives created by meeting a static ( fixed ) budget?

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".