Question: The next dividend payment by Dizzle, Inc., will be $4 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever.

The next dividend payment by Dizzle, Inc., will be $4 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $50 per share, what is the required return? 1596 1396 990 11%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the required return we can use the Gordon Growth Model Dividend Discount Model w... View full answer

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!

Questions: 1. The next dividend payment by Dizzle, Inc., will be $2.48 per share. The dividends are anticipated to maintain a growth rate of 4.5 percent forever. If the stock currently sells for...

1.) The next dividend payment by Dizzle, Inc., will be $3.35 per share. The dividends are anticipated to maintain a growth rate of 2.50 percent, forever. If the stock currently sells for $50.30 per...

The next dividend payment by Dizzle, Inc., will be $2.60 per share. The dividends are anticipated to maintain a growth rate of 6.25 percent, forever. If the stock currently sells for $48.80 per...

Complete the following questions and submit pictures of your solutions. 1 Griffin Corporation will pay a $5.00 per share dividend next year. The company pledges to increase its dividend by 3 percent...

you assig The assignment should be clearly typed on Microsoft Excel or on Microsoft Word; sloppy work will not be accepted. (Show the calculations that you made with the formulas) Questions: 1. The...

Questions: 1. The next dividend payment by Dizzle, Inc., will be $2.48 per share. The dividends are anticipated to maintain a growth rate of 4.5 percent forever. If the stock currently sells for...

I need help with my intermediate finance homework. Thank you! 1. TwitterMe, Inc., is a new company and currently has negative earnings. The company's sales are $2,100,000 and there are 150,000 shares...

LO 1 1. Stock Values. Gilmore, Inc., just paid a dividend of $2.35 per share on its stock. The dividends are expected to grow at a constant rate of 4.1 percent per year, indefinitely. If investors...

On October 1, 2014, Alpha Inc. assigns $2 million of its accounts receivable to Alberta Provincial Bank as collateral for a $1.6-million loan evidenced by a note. The bank's charges are as follows: a...

Prepare income statement, equity and balance sheet. Acco unt No. D. RAMOS GRAPHIC ARTS TRIAL BALANCE JUNE 30, 2011 ACCOUNT TITLE Cash Accounts Receivable Office Supplies Land Building Accumulated...

All of the following are weaknesses of a precedent transactions analysis EXCEPT: Question 18 options: A) Multiples may be skewed, depending on the economic environment B) Information may be...

give rationale why mann whitney test best statistical test for this case : Do significant differences exist between husbands and wives regarding holiday depression? There is an ordinal measure of...

8. Do the organizations fringe benefits reflect diversity?

7. Do the organizations social activities reflect diversity?

6. Does the organization that you work for hire and promote in such a way that employee diversity reflects the diversity of society?