Question

Pipi Storm Corporation has just paid dividends of R2.12 per share. Assume that over the next three years dividends will grow as follows: 25% in year one; 12% in year two; and 10% in year three. After that, growth is expected to level off to a constant growth rate of 7% per year. The required rate of return is 12%. Use the multistage model to calculate the intrinsic value of the share.

Answer #1

Communications Fiji Limited just paid dividends of $2 per share.
Assume that over the next three years dividends will grow as
follows, 5% next year, 15% in year two, and 25% in year 3. After
that growth is expected to level off to a constant growth rate of
10% per year. The required rate of return is 15%. Calculate the
intrinsic value using the multistage model.

Micro Corp. just paid dividends of $2 per share. Assume that
over the next three years dividends will grow as follows, 5% next
year, 15% in year two, and 25% in year 3. After that growth is
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The required rate of return is 15%. Calculate the intrinsic value
using the multistage model. What is the value of stock two years
from now? If it is trading at...

Thirsty Cactus Corp. just paid a dividend of $1.20 per share.
The dividends are expected to grow at 25 percent for the next 9
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Required : If the required return is 14 percent, what is the price
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percent per year for the next 6 years, 4 percent per year for the
subsequent 4 years, and then level off into perpetuity at a growth
rate of 2 percent per year. Using the dividend growth model, what
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A7X Corp. just
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If the required
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If the required return is 14 percent, what is the price of the
stock today?

Could I Industries just paid a dividend of $1.32 per share. The
dividends are expected to grow at a rate of 17.5 percent for the
next five years and then level off to a growth rate of 6 percent
indefinitely. If the required return is 14 percent, what is the
value of the stock today?

Could I Industries just paid a dividend of $1.97 per share. The
dividends are expected to grow at a rate of 18 percent for the next
three years and then level off to a growth rate of 7 percent
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value of the stock today? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)

Ameritech Corporation paid dividends per share of $3.56
in 2018, and dividends are expected to grow 5.5% a year forever.
The investors’ required rate of return is 10%. What is the value
per share, using the Gordon Growth Model? The stock is trading for
$80 per share. What would the growth rate in dividends have to be
to justify this price?

Q:R&D Technology Corporation has just paid a dividend of
$0.50 per share . The dividends are expected to grow at 24% per
year for the next two years and at 8% per year thereafter. If the
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current value of the stock. a.

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