Question

The Modern Company Limited has just paid a dividend of $1.40 per share. The company is expanding very fast and is expected to grow at a rate of 25% for the next two years. After year two, the dividend is expected to settle to a constant growth rate of 2% annually into the indefinite future. What is the fair value for one share of the Modern Company stock if the market required rate of return is 12%?

Answer #1

A7X Corp. just
paid a dividend of $1.40 per share. The dividends are expected to
grow at 30 percent for the next 9 years and then level off to a
growth rate of 8 percent indefinitely.
If the required
return is 14 percent, what is the price of the stock
today?
Multiple Choice
$82.18
$2.72
$110.05
$107.89
$105.74

A company just paid a dividend of $0.81 per share and you expect
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(Answer to the nearest penny per share.)

Assume that A limited paid a dividend of 23.3 cents per share
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(11.32% should be entered as 11.32). Do not enter the % sign.

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Contact Corporation just paid a dividend of $1.50 per share. The
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A company just paid a dividend of $1.30 per share. The consensus
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penny.)

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A company just paid an annual dividend of $5.00 per share on its
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Portman Industries just paid a dividend of $2.16 per share. The
company expects the coming year to be very profitable, and its
dividend is expected to grow by 16.00% over the next year. After
the next year, though, Portman's dividend is expected to grow at a
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Select...

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