Question: Post It Inc. is expected to pay a per share dividend at the end of the year = 7$ The dividend is expected to grow

Post It Inc. is expected to pay a per share dividend at the end of the year = 7$

The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock is 12%.

What is the stocks current value per share? Round to the nearest penny.

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!

Q:

A jet-engine thrust reverser to reduce an aircraft speed of 200 km/h after landing employs folding vanes which deflect the exhaust gases in the direction indicated. If the engine is consuming 50 kg...

Q:

10-2 CONSTANT GROWTH VALUATION Thomas Brothers is expected to pay a $0.50 per share dividend at the end of the year (i.e ., D. = $0.50). The divi- dend is expected to grow at a constant rate of 7% a...

Q:

CONSTANT GROWTH VALUATION Tresnan Brothers is expected to pay $1 per share dividend at the end of the year, D-51). The dividend is expected to grow at a constant rate of 3% a year. The required rate...

Q:

1. ABC Company is expected to pay $2.80 per share dividend at the end of the year (D1 = $2.80). The dividend is expected to grow at a constant rate of 5% per year. The required rate of return on the...

Q:

1. Problem 9.02 (Constant Growth Valuation) ebook Tresnan others is expected to pay $2.00 per share dividend at the end of the year (L, D - 52,80). The dividend is expected to grow at constant of the...

Q:

T Corp is expected to pay $1.00 per share dividend at the end of the year (D 1 = $1.00). The dividend is expected to grow at a constant rate of 7% a year. The required return on the stock is 17%....

Q:

George Brothers (GB) is expected to pay $3.20 per share dividend at the end of this year. This dividend is expected to grow at a constant 3% per year indefinitely. the required return on GB's stock...

Q:

World Wide Inc. is expected to pay a per share dividend of $3 one year from today, which will then grow at a rate of 8% in perpetuity. The firm's equity cost of capital is 12%. This is the return...

Q:

Sorensen systems inc is expected to pay a dividend of $2.90 at year end the dividend is expected to grow at a constant rate of 5.50% a year and the common stock currently sells for $37.50 a sha...

Q:

12. JAH Ltd does not currently pay a dividend, but you expect that it will begin paying $0.50 per share dividend at the end of year 2. The dividend is expected to grow at 20% per year for 3 years,...

Q:

Homework che este Cucky Workout ook tena Brother expected to a persone divenut the yew 51). The divided into one of yet. There is the 1. Wat is the person you there Quratim| Check My Work 3...

Q:

Kanab Co. and Zion Co. are U.S. companies that engage in much business within the United States and are about the same size. They both conduct some international business as well. Kanab Co. has a...

Q:

A car is moving with a velocity of 20 m/s. If the driver applies the brakes and brings the car to a halt in 4 seconds, what is the average acceleration of the car? A ball is thrown vertically upwards...

Q:

OSHA has established a penalty schedule for employer violations. The severity of the fine depends upon the severity of the violation. Penalties of up to $ q , per violation can be proposed for...

Q:

At December 31, 2011, Hull-Meyers Corp. had the following investments that were purchased during 2011, its first year of operations: No investments were sold during 2011. All securities except...

Q:

Gutierrez Company makes various electronic products. The company is divided into a number of autonomous divisions that can either sell to internal units or sell externally. All divisions are located...

Q:

On January 2, 2011, Sanborn Tobacco Inc. bought 5% of Jackson Industry's capital stock for $90 million as a temporary investment. Sanborn classified the securities acquired as available-for-sale....

Q:

Rey Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The...

Q:

Eckert Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course....

Q:

Which of the following words has a different meaning than the others? Select the single best answer: A . systematic B . organized C . methodical D . orderly E . All of these words are synonyms or...

Q:

For employees to be committed to the strategy, they need to understand the business case for sustainable wine production. Why is sustainability important to Zuvan Winery, and what can Kamali do to...

Q:

To what extent is HRM different from conventional personnel management or is it simply old wine in new bottles?

Q:

To what extent does the emergence of HRM reflect the rise and ideology of neo-liberalism?