Question

Disney ( DIS) recently paid a cash dividend of $2.00 per share. Historically their dividends have...

Disney ( DIS) recently paid a cash dividend of $2.00 per share. Historically their dividends have been growing at a constant rate of about 5% per year. Based on the Risk of DIS , investors require an7.5% return. Estimate the current stock price Disney
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

­SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Kosten Warenhaus just paid a dividend of $2.00 (D0 = $2.00)per share, and that dividend...
The Kosten Warenhaus just paid a dividend of $2.00 (D0 = $2.00)per share, and that dividend is expected to grow at a constant rate of 7.50% per year in the future. The company’s beta is 0.93, the market return is 9.0%, and the risk-free rate is 4.00%. 1. What is the required return on the stock, rs? [Hint: Kj=Krf + B(Km – Krf)] 2. What is the company’s current stock price?
The Birdstrom Co. just recently paid a dividend of $2.00 per share. Stock market analysts expect...
The Birdstrom Co. just recently paid a dividend of $2.00 per share. Stock market analysts expect that the growth rate for the dividend will be 40% in year 1, 30% in year 2, 20% in year 3, 15% in year 4, and 10% in year five. After the fifth year, the dividend will grow at a constant rate of 6%. If the required return for Birdstrom is 12%, calculate the current stock price and the expected dividend yield and capital...
Madison Tour, Inc., just paid a dividend of $3.15 per share on its stock. The dividends...
Madison Tour, Inc., just paid a dividend of $3.15 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely. Assume investors require a return of 11 percent on this stock. What will the price be in 3 years?
1. Sky High Co. just paid a dividend of $2.0 per share on its stock. The...
1. Sky High Co. just paid a dividend of $2.0 per share on its stock. The dividends are expected to grow at a constant rate of 2 percent per year indefinitely. If investors require an 8.6 percent return on Sky High Co. stock, the current price is $ _________ . Round it to two decimal places 2. Sky High Co. just paid a dividend of $4.6 per share on its stock (D0). The dividends are expected to grow at a...
Peratti Industries recently paid a $2.50 dividend per share. The dividend of the company is expected...
Peratti Industries recently paid a $2.50 dividend per share. The dividend of the company is expected to grow by 30 percent next year, 25 percent the following year, and 20 percent the year after before growing at constant rate of 6 percent growth that continue forever. Peratti Industries’ beta is 0.7619, the risk-free rate of interest is 1.6 percent, and the rate of return on market is 10 percent. what is the current stock price of Peratti Industries? What was...
1. The ArtForAll Co. (AFA )just paid a dividend of $1.75 per share on its stock....
1. The ArtForAll Co. (AFA )just paid a dividend of $1.75 per share on its stock. The dividends are expected to grow at a constant rate of 4% per year indefinitely. If investors require a return of 10% on AFA’s stock: What is the current price? What will the price be in 3 years? In 10 years?
The McGonigall Company has just recently paid a dividend of $2.50 per share. Their dividends have...
The McGonigall Company has just recently paid a dividend of $2.50 per share. Their dividends have been growing at a rate of 5% over the last several decades, and will most likely continue at that rate for the foreseeable future. Their stock is currently selling for $40.00 per share. If McGonigall were to issue new stock, they would incur flotation costs of 8%. What are the costs of internal equity and external equity for McGonigall? If the McGonigall company (from...
Company X currently paid a $4 per share dividend on its common stock. Dividends are expected...
Company X currently paid a $4 per share dividend on its common stock. Dividends are expected to grow forever at 6% and investors require a 15% rate of return. Company X's management is planning to enter new, risky markets to increase its expected dividend growth. However, due to increased risk, the investors required rate of return will increase to 20%. What must be the new value for the dividend growth to justify entering the new, risky markets and to keep...
The Pioneer Corporation currently paid a $3.00 per share dividend on its common stock. Dividends are...
The Pioneer Corporation currently paid a $3.00 per share dividend on its common stock. Dividends are expected to grow forever at 3%, and investors require a 12% rate of return. Pioneer's management is planning to enter new, risky markets to increase its expected dividend growth. However, in response to the increased risk, the investors' required rate of return will increase to 15%. What must be the new value for the dividend growth to justify entering the new, risky markets and...
Adams Logistics recently paid a $0.80 per share dividend this year. The dividend is expected to...
Adams Logistics recently paid a $0.80 per share dividend this year. The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock is 8%. What is the stock’s current value per share?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT