Question

Present value of dividends: Fresno Corp. is a fast-growing company that expects to grow at a...

Present value of dividends: Fresno Corp. is a fast-growing company that expects to grow at a rate of 30 percent over the next two years and then to slow to a growth rate of 18 percent for the following three years. If the last dividend paid by the company was $2.15, estimate the dividends for the next five years. Compute the present value of these dividends if the required rate of return is 14 percent. Please show the excel formula to derive at the answers)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Below is the sheet showing calculation of Present value of Dividend

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
Sheridan Corp. is a fast-growing company whose management expects it to grow at a rate of...
Sheridan Corp. is a fast-growing company whose management expects it to grow at a rate of 26% percent over the next two years and then slow to a growth of 18% for the following three years. If the last dividend paid by the company was $2.15. What is the dividend for the 1st year, 2nd year, 3rd year,4th year, and 5th year? Then compute the present value of these dividends if the required rate of return is 14 percent.
Wildhorse Corp. is a fast-growing company whose management expects it to grow at a rate of...
Wildhorse Corp. is a fast-growing company whose management expects it to grow at a rate of 30 percent over the next two years and then to slow to a growth rate of 13 percent for the following three years. If the last dividend paid by the company was $2.15. It then aasks for D1 through D5. Then asks for Compute the present value of these dividends if the required rate of return is 14 percent. (Round intermediate calculations and final...
Sandhill Corp. is a fast-growing company whose management expects it to grow at a rate of...
Sandhill Corp. is a fast-growing company whose management expects it to grow at a rate of 29 percent over the next two years and then to slow to a growth rate of 12 percent for the following three years. If the last dividend paid by the company was $2.15. What is the dividend for the 2nd year? (Round answer to 3 decimal places, e.g. 15.250.) What is the dividend for the 3rd year? (Round answer to 3 decimal places, e.g....
1. Ivanhoe Corp. is a fast-growing company whose management expects it to grow at a rate...
1. Ivanhoe Corp. is a fast-growing company whose management expects it to grow at a rate of 23 percent over the next two years and then to slow to a growth rate of 17 percent for the following three years. If the last dividend paid by the company was $2.15. What is the dividend for the 1st year? (Round answer to 3 decimal places, e.g. 15.250.) D1: $______ What is the dividend for the 2nd year? (Round answer to 3...
Q5. Aspen Australia ltd is a fast growing company and expects to grow at a constant...
Q5. Aspen Australia ltd is a fast growing company and expects to grow at a constant rate of 6%. the company declared a dividend of 1.50 last year. if the required rate of return on such shares is 12% i. what is the current market value of this share? ii. what is the expected dividends in year 4 and year 6? iii. what is the price of the share 6 years from now?
Cullumber, Inc., is a fast-growing technology company. Management projects rapid growth of 30 percent for the...
Cullumber, Inc., is a fast-growing technology company. Management projects rapid growth of 30 percent for the next two years, then a growth rate of 17 percent for the following two years. After that, a constant-growth rate of 8 percent is expected. The firm expects to pay its first dividend of $2.52 a year from now. If dividends will grow at the same rate as the firm and the required rate of return on stocks with similar risk is 18 percent,...
Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent...
Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 4.5 percent thereafter. If the required return is 10.5 percent and the company just paid a dividend of $2.58, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Melanie Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent...
Melanie Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 14.9 percent and the company just paid a dividend of $2.39, what is the current share price? ( Do not round intermediate calculations, round your answer to two decimal points, i.e. 32.16)
Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 28 percent...
Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 6.9 percent thereafter. If the required return is 16 percent and the company just paid a dividend of $3.20, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share Price=
Zena Corp just paid investors a dividend of $1.25. This growing company expects dividends to grow...
Zena Corp just paid investors a dividend of $1.25. This growing company expects dividends to grow at 8% for the next three years. After year 3, dividends are expected to grow constantly at 2% per year. Investors require a 7% return on Zena Corp stock. What is the current value of Zena Corp stock? 1-$30.04    2-$28.51 3-$25.00 4-$26.22 Filmore Incorporated anticipates its revenues and common stock dividends will remain flat forever. It currently pays an annual dividend of $20...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT