Question

Company B is expected to pay dividends of $1.35 every 6 months for the next 4...

Company B is expected to pay dividends of $1.35 every 6 months for the next 4 years. If the current price of Company B stock is $100, and Company B's equity cost of capital is 4.5%. What price would you expect the stock to sell for at the end of 4 years? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."

Homework Answers

Answer #1

I hope my efforts will be fruitful to you....?

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Coolibah Holdings is expected to pay dividends of $ 1.40 every six months for the next...
Coolibah Holdings is expected to pay dividends of $ 1.40 every six months for the next three years. If the current price of Coolibah stock is $ 21.60​, and​ Coolibah's equity cost of capital is 16​%, what price would you expect​ Coolibah's stock to sell for at the end of three​ years? A. $ 28.81 B. $ 24.01 C. $ 27.61 D. $ 26.41
Darrens Holdings is expected to pay dividends of $1.00 every six months for the next three...
Darrens Holdings is expected to pay dividends of $1.00 every six months for the next three years. If the current price of Darrens stock is $22.70​, and​ Darrens's equity cost of capital is 18​%, what price would you expect​ Darrens's stock to sell for at the end of three​ years?
Company F will have earnings per share of $5 this year and expect that they will...
Company F will have earnings per share of $5 this year and expect that they will pay out $2 of these earnings to shareholders in the form of a dividend. Company F's return on new investments is 10% and their equity cost of capital is 13%. The expected growth rate for Company F's dividends is ________. Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer."
"An auto-parts company is deciding whether to sponsor a racing team for a cost of $1000000....
"An auto-parts company is deciding whether to sponsor a racing team for a cost of $1000000. The sponsorship would last for 4 years and is expected to increase cash flows by $300000 per year. If the discount rate is 8%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an...
2.hw5 "Company ZZZ is an all-equity firm with 200,000,000 shares outstanding. Company ZZZ currently has a...
2.hw5 "Company ZZZ is an all-equity firm with 200,000,000 shares outstanding. Company ZZZ currently has a cash flow of $100,000,000 USDs and expects future free cash flows of $50,000,000 per year. Management plans to use the cash to expand the firm's operations, which will in turn increase future cash free cash flows to $200,000,000 per year. If the cost of capital of Company ZZZ's investments is 7%, calculate the stock price for the company if the expansion where to happen....
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
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 coupon bond that pays interest annually has a par value of $1000, matures in 5...
"A coupon bond that pays interest annually has a par value of $1000, matures in 5 years, and has a yield to maturity of 6%. If the coupon rate is 10%, the value of the bond today will be __________. Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."
"A coupon bond that pays interest quarterly has a par value of $1000, matures in 5...
"A coupon bond that pays interest quarterly has a par value of $1000, matures in 5 years, and has a yield to maturity of 16%. If the coupon rate is 10%, the value of the bond today will be __________. Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."
QUESTION 5 "Axon Industries needs to raise $1,000,000 USDs for a new investment project. If the...
QUESTION 5 "Axon Industries needs to raise $1,000,000 USDs for a new investment project. If the firm issues 1-year debt, it may have to pay an interest rate of 9%, although Axon's managers believe that 6.5% would be a fair rate given the level of risk. If the firm issues equity, they believe the equity may be underpriced by 9%.What is the cost (in USDs) to current shareholders of financing the project out of retained earnings? Note: Express your answers...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT