New Gadgets, Incorporated, currently pays no dividend but is expected to pay its first annual dividend of $5.30 per share exactly 9 years from today. After that, the dividends are expected to grow at 3.9 percent forever. If the required return is 12.1 percent, what is the price of the stock today?
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- New Gadgets, Incorporated, currently pays no dividend but is expected to pay its first annual dividend of $4.85 per share exactly 6 years from today. After that, the dividends are expected to grow at 3.4 percent forever. If the required return is 11.2 percent, what is the price of the stock today?CanPro Co. is expecting that its dividend for this coming year will be $1.2 a share and that all future dividends are expected to increase by 3 percent annually. What is the required return of this stock if the current market price of the stock is $17?ABC, Inc.'s stock is currently selling for $66.17. The dividends are expected to grow at 1.16% each year forever. If the required rate of return on the stock is 13.98%, what is the current period's dividend? That is, solve for D0.
- Woidtke Manufacturing’s stock currently sells for $22 a share. The stockjust paid a dividend of $1.20 a share (i.e., D0 = $1.20), and the dividend isexpected to grow forever at a constant rate of 10% a year. What stock priceis expected 1 year from now? What is the estimated required rate of returnon Woidtke’s stock (assume the market is in equilibrium with the requiredreturn equal to the expected return)?ABC Co. presently does not pay a dividend, but is expected to pay a dividend in year 3 of $.75 and the dividend then will increase at a constant rate of 5% annually. The rate of return is 10%. What is an estimate of the price of the stock today?Pacific Enterprises Inc. stock does not now pay dividends. Investors expect that it will begin paying a dividend of $2.00/share in exactly 5 years at time 5. That is, they forecast that D5 will be $2.00/share. Investors expect that the dividend will then remain at that level of $2.00/share forever after that. They require a return of 19.00% on this stock. What is the value of this stock today based on the discounted dividend model?
- The next dividend payment by Halestorm, Inc., will be $2.04 per share. The dividends are anticipated to maintain a growth rate of 4.5 percent forever. The stock current sells for $37 per share. a) What is the required return of this stock? b) What is the dividend yield for this stock? c) What is the expected capital gains yield for this stock?Woidtke Manufacturing's stock currently sells for $16 a share. The stock just paid a dividend of $2.60 a share (i.e., D0 = $2.60), and the dividend is expected to grow forever at a constant rate of 10% a year. What stock price is expected 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent. What is the estimated required rate of return on Woidtke's stock (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round the answer to two decimal places.The Ramirez Company's last dividend was $1.8. Its dividend growth rate is expected to be constant at 14% for 2 years, after which dividends are expected to grow at a rate of 5% forever. Its required return (rs) is 13%. What is the best estimate of the current stock price? Answer to the nearest dollar amount, and enter without the dollar sign
- Arcs and Triangles paid an annual dividend of $1.47 a share last month. The company is planning on paying $1.52, $1.58, and $1.60 a share over the next three years, respectively. After that, the dividend will be constant at $1. 79 per share per year. What is the market price of this stock if the market rate of return is 10.0 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Orange Inc's next two annual dividends be $6.05 and $5.55, with the first occurring exactly one year from today. After the second dividend, future dividends will grow at a constant rate of 7% per year indefinitely. What is a fair price for Orange stock if investors require a return of 14.3%? Round your answer to the nearest penny.ABC Inc. does not expect to grow in the next several years. its last annual dividend was $3.57 if the required rate of return on similar investments is 7 percent, how much should we pay for the stock today? round answer to two decimal places