Question

Artistic Company has paid the following dividends over the last 5 years: $1.25, $1.52, $1.73, $1.65,...

Artistic Company has paid the following dividends over the last 5 years: $1.25, $1.52, $1.73, $1.65, $1.81. Using the computed geometric growth rate, and assuming this rate will continue into the foreseeable future, estimate the firms stock price next year assuming a discount rate of 11 percent.

Homework Answers

Answer #1

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

NO INTERMEDIATE ROUNDING IS DONE AS NOTHING WAS MENTIONED. NEED ANY CHANGE IN PARAMETERS, LET ME KNOW. THANK YOU

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Over the past 5 years, a firm has paid annual dividends of $1.40, $1.55, $1.70, $1.73,...
Over the past 5 years, a firm has paid annual dividends of $1.40, $1.55, $1.70, $1.73, and $1.80 per share. What is the geometric average dividend growth rate for this period? 1. 6.48% 2. 6.03% 3. 6.79% 4. 5.35% Work on the slide example 6 and select from the following options to see if you answer it correctly. 1. $35.77 2. $45.08 3. $48.21 4. $50.60
17. Over the past 5 years, DL Insulation has paid annual dividends of $1.40, $1.55, $1.70,...
17. Over the past 5 years, DL Insulation has paid annual dividends of $1.40, $1.55, $1.70, $1.73, and $1.77 per share. What is the geometric average dividend growth rate for this period? A. 4.80 percent B. 5.79 percent C. 5.88 percent D. 6.04 percent E. 6.33 percent 18. Roy's Markets has net income of $164,000. The firm has 200,000 shares of common stock outstanding. The dividend for this year is $0.61 per share. What is the retention ratio? A. 0.220...
Q1. Johnson Products earned $2.80 per share last year and paid a $1.25 per share dividend....
Q1. Johnson Products earned $2.80 per share last year and paid a $1.25 per share dividend. If ROE was 14 percent, what is the sustainable growth rate? Q2. Joker stock has a sustainable growth rate of 8 percent, ROE of 14 percent, and dividends per share of $1.65. If the P/E ratio is 19, what is the value of a share of stock?
the last dividend paid by coppard inc. was $1.25. the dividend growth rate is expected to...
the last dividend paid by coppard inc. was $1.25. the dividend growth rate is expected to be constant at 35% for 3 years, after which dividends are expected to grow at a rate of 6% forever. if the firms required return rate is 11%, what is its current stock price?
Angus Corporation paid a dividend of $1.25 per share last year. Dividends are expected to grow...
Angus Corporation paid a dividend of $1.25 per share last year. Dividends are expected to grow at a rate of 5% per year into the foreseeable future. 1) Assume the current Treasury security rate is 4% and the average S&P 500 market return is 8%. ValueLine is reporting a beta of 1.35 for Angus. How much do you think a share of Angus stock is worth? 2) If Angus’ shares are currently selling for $35, what is the expected rate...
The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to...
The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to be constant at 50% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price?
The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to...
The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to be constant at 32.5% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price?
The Xerox Company last paid their dividend of $2.5 to the stockholders. For the first 4...
The Xerox Company last paid their dividend of $2.5 to the stockholders. For the first 4 years the dividend will grow at a 6% and then the rate of growth changes to 4% percent per year for the next 3 years .After that the dividend will grow at 3% for the foreseeable future. The required rate of return is 8 percent. If you want to buy the stock maximum how much you should pay for it?
16. The Row Boat has paid annual dividends of $.48, $0.60, and $0.62 a share over...
16. The Row Boat has paid annual dividends of $.48, $0.60, and $0.62 a share over the past three years, respectively. The company now predicts that it will maintain a constant dividend since its business has leveled off and sales are expected to remain relatively constant. Given the lack of future growth, you will only buy this stock if you can earn at least a 14 percent rate of return. What is the maximum amount you are willing to pay...
The KJ Corporation has averaged an ROE of 11% over the past 5 years and that...
The KJ Corporation has averaged an ROE of 11% over the past 5 years and that should continue into the future.  The firm has a payout ratio of 80% on earnings per share of $10.66 and paid the dividend yesterday. The discount rate for a firm of KJ's risk level is 12% a) What is the expected Growth Rate of KJ's dividend? (note: round to the nearest 100th of a percent) (1 mark) b) What is KJ's current stock price?               (note: round...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT