Question

The dividends of FIN220 Co. are expected to grow at 15 percent in one year, 20 percent in two years, after which the constant growth rate of 6 percent is expected forever. If the company has just paid the dividend of 3.10 Baht and the required return on the stock is 12 percent, what is the current share price?

64.62 |
||

69.06 |
||

71.08 |
||

66.84 |

Answer #1

Marcel Co. is growing quickly. Dividends are expected to grow at
a 20 percent rate for the next 3 years, with the growth rate
falling off to a constant 5 percent thereafter. Required: If the
required return is 9 percent and the company just paid a $3.90
dividend. what is the current share price?

Synovec Co. is growing quickly. Dividends are expected to grow
at a rate of 23 percent for the next 3 years, with the growth rate
falling off to a constant 4 percent thereafter.
If the required return is 9 percent and the company just paid a
$3.10 dividend, what is the current share price?
A. $102.46 B. $106.64 C. $96.90 D. $104.55 E. $100.10

Hughes Co. is growing quickly. Dividends are expected to grow at
a 28 percent rate for the next three years, with the growth rate
falling off to a constant 7 percent thereafter. If the required
return is 12 percent and the company just paid a $2.65 dividend,
what is the current share price?

Synovec Co. is growing quickly. Dividends are expected to grow
at a rate of 21 percent for the next 3 years, then falls to a
constant growth rate of 15 percent for another three year, then the
growth rate will fall off to a constant 3 percent thereafter.
If the required return is 7 percent and the company just paid a
$3.00 dividend. what is the current share price?

Marcel Co. is growing quickly. Dividends are expected to grow at
a 16 percent rate for the next 3 years, with the growth rate
falling off to a constant 3 percent thereafter.
If the required return is 8 percent and the company just paid a
$3.70 dividend. what is the current share price?

Synovec Co. is growing quickly. Dividends are expected to grow
at a rate of 23 percent for the next 3 years, with the growth rate
falling off to a constant 7 percent thereafter. If the required
return is 10 percent and the company just paid a $3.40 dividend.
what is the current share price?

Janicex Co. is growing quickly. Dividends are expected to grow
at ________ percent for the next three years,( rate is equal to 63,
then 33 percent is the growth rate). The growth rate will be 8
percent in year 4 and the growth rate will fall off to a constant 6
percent thereafter. If the required return is 11 percent, and the
company just paid a dividend of $1.90, what is the current share
price

Janicex Co. is growing quickly. Dividends are expected to grow
at ________ percent for the next three years,( rate is equal to 63,
then 33 percent is the growth rate). The growth rate will be 8
percent in year 4 and the growth rate will fall off to a constant 6
percent thereafter. If the required return is 11 percent, and the
company just paid a dividend of $1.90, what is the current share
price

Synovec Co. is growing quickly. Dividends are expected to grow
at a rate of 21 percent for the next 3 years, with the growth rate
falling off to a constant 5 percent thereafter.
If the required return is 8 percent and the company just paid a
$1.80 dividend. what is the current share price?
$97.31
$95.41
$92.87
$93.50

Marcel Co. is growing quickly. Dividends are expected to grow at
a 21 percent rate for the next 3 years, with the growth rate
falling off to a constant 4 percent thereafter.
Required:
If the required return is 10 percent and the company just paid a
$2.80 dividend. what is the current share price? (Do not
round your intermediate calculations.)

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