Question

Octagon, Inc. has made a commitment to pay the following dividends over the next four years:...

Octagon, Inc. has made a commitment to pay the following dividends over the next four years: $7, $13, $18, and $3.25. At the end of this four year period, the firn has further commited to grow the dividend indefinitiely at a constant 5 percent growth rate. If you require a return on this stock of 8.4 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Formulae

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
#4 Johnson, Inc. has made a commitment to pay the following dividends over the next four...
#4 Johnson, Inc. has made a commitment to pay the following dividends over the next four years: $7, $13, $18, and $3.25. At the end of this four year period, the firn has further commited to grow the dividend indefinitiely at a constant 5 percent growth rate. If you require a return on this stock of 8.4 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Question1: You own a portfolio that is 25 percent invested in Stock X, 35 percent in...
Question1: You own a portfolio that is 25 percent invested in Stock X, 35 percent in Stock Y, and 40 percent in Stock Z. The expected returns on these three stocks are 10 percent, 13 percent, and 18 percent, respectively. What is the expected return on the portfolio? Question 2: Johnson, Inc. has made a commitment to pay the following dividends over the next four years: $7, $13, $18, and $3.25. At the end of this four year period, the...
Upton Corporation is expected to pay the following dividends over the next four years: $14, $10,...
Upton Corporation is expected to pay the following dividends over the next four years: $14, $10, $9, and $4.50. Afterwards, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 10 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Upton Corporation is expected to pay the following dividends over the next four years: $14, $10,...
Upton Corporation is expected to pay the following dividends over the next four years: $14, $10, $9, and $4.50. Afterwards, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 10 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Newkirk, Inc., is expected to pay equal dividends at the end of each of the next...
Newkirk, Inc., is expected to pay equal dividends at the end of each of the next two years. Thereafter, the dividend will grow at a constant annual rate of 4.1 percent, forever. The current stock price is $46. What is next year’s dividend payment if the required rate of return is 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) dividend payment=
Briley, Inc., is expected to pay equal dividends at the end of each of the next...
Briley, Inc., is expected to pay equal dividends at the end of each of the next two years. Thereafter, the dividend will grow at a constant annual rate of 4.5 percent, forever. The current stock price is $50. What is next year’s dividend payment if the required rate of return is 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Newkirk, Inc., is expected to pay equal dividends at the end of each of the next...
Newkirk, Inc., is expected to pay equal dividends at the end of each of the next two years. Thereafter, the dividend will grow at a constant annual rate of 5.6 percent, forever. The current stock price is $61. What is next year’s dividend payment if the required rate of return is 14 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Newkirk, Inc., is expected to pay equal dividends at the end of each of the next...
Newkirk, Inc., is expected to pay equal dividends at the end of each of the next two years. Thereafter, the dividend will grow at a constant annual rate of 5.9 percent, forever. The current stock price is $64.    What is next year’s dividend payment if the required rate of return is 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
ABC Inc., will pay no dividends over the next 13 years because the firm needs to...
ABC Inc., will pay no dividends over the next 13 years because the firm needs to retain its earnings for growth purposes. The company will pay an $4 per share dividend in 14 years and will increase the dividend by 4 percent per year thereafter. If the required return on this stock is 9 percent, what is the current (t=0) share price? ABC Inc. just paid a dividend of $1.75 per share. The company will increase its dividend by 28...
Lohn Corporation is expected to pay the following dividends over the next four years: $9, $7,...
Lohn Corporation is expected to pay the following dividends over the next four years: $9, $7, $3, and $1. Afterward, the company pledges to maintain a constant 8 percent growth rate in dividends forever.    If the required return on the stock is 13 percent, what is the current share price?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT