Question

Rylan Industries has is expected to pay a constant dividend for the next four years. Rylan's...

Rylan Industries has is expected to pay a constant dividend for the next four years. Rylan's current share price is $30 per share and is expected to be (ex-dividend) $40 per share in year 4. Given that Rylan's equity cost of capital is 14%, what is the expected constant annual dividend in years 1-4?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

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
Rylan Industries has is expected to pay a constant dividend for the next four years. Rylan's...
Rylan Industries has is expected to pay a constant dividend for the next four years. Rylan's current share price is $30 per share and is expected to be (ex-dividend) $40 per share in year 4. Given that Rylan's equity cost of capital is 14%, what is the expected constant annual dividend in years 1-4? a. $3,45 per share b. $4,98 per share c. $2,92 per share d. $4,30 per share
Rylan Industries is expected to pay a dividend of $5.90 a year for the next four...
Rylan Industries is expected to pay a dividend of $5.90 a year for the next four years. If the current price of Rylan stock is $31.65​, and​ Rylan's equity cost of capital is 14​%, what price would you expect​ Rylan's stock to sell for at the end of the four​ years? A.$24.42 B.$43.96 C.$19.54 D. $ 68.38
ABC is expected to pay a dividend of $1.25 every six months for the next four...
ABC is expected to pay a dividend of $1.25 every six months for the next four years. The current share price is $25.76 and the relevant discount rate is 14% (compounded semi-annually). What do you expect the share price at the end of year 4 to be?
ABC is expected to pay a dividend of $1.25 every six months for the next four...
ABC is expected to pay a dividend of $1.25 every six months for the next four years. The current share price is $25.76 and the relevant discount rate is 14% (compounded semi-annually). What do you expect the share price at the end of year 4 to be? a. $28.82 b. $26.74 c. $31.44 d. $25.12
Krell Industries has a share price of $22.35today. If Krell is expected to pay a dividend...
Krell Industries has a share price of $22.35today. If Krell is expected to pay a dividend of $1.14this year and its stock price is expected to grow to $23.67 at the end of the​ year, what is​ Krell's dividend yield and equity cost of​ capital? The dividend yield is __​%. ​(Round to one decimal​ place.) The capital gain rate is__​%. ​(Round to one decimal​ place.) The total return is__%. ​ (Round to one decimal​ place.)
Krell Industries has a share price of $20.50 today. If Krell is expected to pay a...
Krell Industries has a share price of $20.50 today. If Krell is expected to pay a dividend of $1.00 this year, and its stock price is expected to grow to $25 at the end of the year, what is Krell's dividend yield and equity cost of capital? (a) Krell's dividend yield is Answer%. (Round to two decimal places.) (b) Krell's equity cost of capital is Answer%. (Round to two decimal places.)
Krell Industries has a share price of $ 22.69$22.69 today. If Krell is expected to pay...
Krell Industries has a share price of $ 22.69$22.69 today. If Krell is expected to pay a dividend of $ 0.77$0.77 this year and its stock price is expected to grow to $ 23.99$23.99 at the end of the year, what is Krell's dividend yield and equity cost of capital?
A stock will pay no dividends for the next 3 years. Four years from now, the...
A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the amount of $2.2. It is expected to pay a dividend of $2.7 exactly five years from now. The dividend is expected to grow at a rate of 6% per year forever after that point. The required return on the stock is 13%. The stock's estimated price per share exactly TWO years from now, P2...
Matilda Industries pays a dividend of $2.10 per share and is expected to pay this amount...
Matilda Industries pays a dividend of $2.10 per share and is expected to pay this amount indefinitely. If Matilda's equity cost of capital is 9%, which of the following would be closest to Matilda's stock price? Please show how to solve in Excel
5. Moorhead industries’ common stock is currently trading at $80 a share. The stock is expected...
5. Moorhead industries’ common stock is currently trading at $80 a share. The stock is expected to pay a dividend of $4/share at the end of the year and the dividend is expected to grow at a constant rate of 6% a year. What is the cost of common equity? 6. Moorhead industries’ has a target capital structure of 35 percent debt, 20 percent preferred stock, and 45 percent common equity. It has a before-tax cost of debt of 8%,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT