Question

Upper Gullies Corp. just paid a dividend of $2.70 per share. The
dividends are expected to grow at 19 percent for the next eight
years and then level off to a 7 percent growth rate indefinitely.
If the required return is 14 percent, what is the price of the
stock today? **(Do not round intermediate calculations. Round
the final answer to 2 decimal places.)**

Stock price | $ |

Answer #1

Price of stock today= Present value of all the dividend till 8th year+ Present value divident from 9th year till perpetuity

Present value of all the dividend till 8th year= (2.70*(1.19))/1.14+(2.70*(1.19^2))/1.14^2+(2.70*(1.19)^3)/1.14^3+(2.70*(1.19)^4)/1.14^4+(2.70*(1.19)^5)/1.14^5+(2.70*(1.19)^6)/1.14^6+(2.70*(1.19)^7)/1.14^7+(2.70*(1.19)^8)/1.14^8

= $26.33

Present value divident from 9th year till perpetuity= (((2.70*(1.19)^8)*1.07)/0.14-0.07)/1.14^8 =$58.18

Price of the stock today = $84.51

A7X Corp. just paid a dividend of $1.55 per share. The
dividends are expected to grow at 30 percent for the next 7 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?

Thirsty Cactus Corp. just paid a dividend of $1.20 per share.
The dividends are expected to grow at 25 percent for the next 9
years and then level off to a 6 percent growth rate indefinitely.
Required : If the required return is 14 percent, what is the price
of the stock today?

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

A7X Corp. just paid a dividend of $1.32 per share. The dividends
are expected to grow at 12 percent for the next eight years and
then level off to a growth rate of 2.5 percent indefinitely. If the
required return is 8 percent, what is the price of the stock
today?
Select one:
A. $28.85
B. $60.91
C. $64.18
D. $45.39
E. $52.87

A7X Corp. just
paid a dividend of $1.50 per share. The dividends are expected to
grow at 40 percent for the next 10 years and then level off to a
growth rate of 6 percent indefinitely.
If the required
return is 15 percent, what is the price of the stock today?

Could I Industries just paid a dividend of $1.30 per share. The
dividends are expected to grow at a rate of 15 percent for the next
five years and then level off to a growth rate of 6 percent
indefinitely. If the required return is 12 percent, what is the
value of the stock today? (Do not round intermediate calculations.
Round your answer to 2 decimal places.) Price:

Could I Industries just paid a dividend of $1.15 per share. The
dividends are expected to grow at a rate of 18 percent for the next
six years and then level off to a growth rate of 7 percent
indefinitely. If the required return is 15 percent, what is the
value of the stock today? (Do not round intermediate calculations.
Round your answer to 2 decimal places.)

Could I Industries just paid a dividend of $1.97 per share. The
dividends are expected to grow at a rate of 18 percent for the next
three years and then level off to a growth rate of 7 percent
indefinitely. If the required return is 13 percent, what is the
value of the stock today? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)

Could I Industries just paid a dividend of $1.34 per share. The
dividends are expected to grow at a rate of 19.3 percent for the
next five years and then level off to a growth rate of 6 percent
indefinitely. If the required return is 10 percent, what is the
value of the stock today?
(Do not round intermediate calculations. Round your answer to 2
decimal places.)

Could I Industries just paid a dividend of $1.82 per share. The
dividends are expected to grow at a 16 percent rate for the next 4
years and then level off to a 4 percent growth rate indefinitely.
If the required return is 15 percent, what is the value of the
stock today? (Do not round intermediate calculations. Round your
answer to 2 decimal places. Omit the "$" sign in your
response.)
Price $______

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