Question: Please help me answer this multiple step question. 1. A.) A company has just paid a dividend of 4.21$. Its discount rate is 11.8%, and

Please help me answer this multiple step question.

A.) A company has just paid a dividend of 4.21$. Its discount rate is 11.8%, and the expected perpetual growth rate is 4.8%. What would you expect to be the stock's price TODAY?

B.) A company has just paid a dividend of 3.94$. Its discount rate is 10.2%, and the expected perpetual growth rate is 4.4%. What would you expect to be the stock's price IN ONE YEAR?

C.) A company has just paid a dividend of 3.55$. Its discount rate is 9.9%, and the expected perpetual growth rate is 3.6%. What is the stock's Capital Gain Yield?

D.) Assume a corporation has just paid a dividend of $ 2.77 per share. The dividend is expected to grow at a rate of 2.5% per year forever, and the discount rate is 8.1%.

What is the dividend yield of this stock?

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!

Please help me answer these Multiple Choice: QUESTION 1 A general partner: has less legal liability than a limited partner. is the term applied only to corporations which invest in partnerships....

:please help me answer the following questions. Question 1: Financial institution has the following balance sheet structure: Assets Liabilities Cash$1,000 Certificate of deposit$10,000 Bond10,000...

PLEASE HELP ME ANSWER THIS PRACTICE PROBLEM QUESTION 1 (15 MARKS) a) Nile Ink has 250,000 shares of common stock outstanding at a market price of RM28 a share. Next year's annual dividend is expected...

Please help with all 3 problems Quantitative Problem 1: Hubbard Industries just paid a common dividend, Do, of $1.30. It expects to grow at a constant rate of 4% per year. If investors require a 8%...

Hello, You helped me with the last assignment for Corporate Finance. I was wondering if you could help me with this one as well? Please let me know and see attached. thanks! Question 1 Healthy Foods...

Please help with these multiple choice questions Question 1 Which of the following ratios would be used to assess the liquidity of a company? (i) Return on capital employed (ii) Gross profit...

I don't understand ANY of this. Number 1 through five please help ? Question 1 (2 points) On July 1, 2016, Spinach Company purchased for $540,000 a warehouse building and the land on which it is...

Please help me to answer this question. Question 1 a) Lisa, a new executive at Baba Capital, is required to perform simple analysis of bonds in the bond market. She wants to calculate the theoretical...

!Help me answer the following attachments. Question: 1) Which project do you think is more risky? How do you think you should incorporate differences in risk into your analysis? Question: 2) Based on...

Please help to answer the questions below : Question 1_(50 points) Pak Andi and Bu Indah are finance officers in PT Sukamaju Tbk., an Indonesian firm located in Semarang. They are analyzing the...

Coburn (beginning capital, $60,000) and Webb (beginning capital $90,000) are partners. During 2014, the partnership earned net income of $80,000, and Coburn made drawings of $18,000 while Webb made...

Roller Skate Inc. sells roller skates for $50 per pair. The roller skates have a variable cost of $25 per pair. Roller Skate Inc. has fixed costs of $20,000 per year. Using a cost-volume-profit...

ans At this point, the tubes all contain unknown solutions and amylase that has reacted for 30 minutes. You added Benedict reagent, and the unknown solutions are still light blue, indicating no...

Andrew Wall is a revenue analyst with Green Corp., a Canadian corporation that provides marine environmental clean-up services around the world. Green reports under IFRS with a December 31 year end,...