Question

Schnus Corporation just paid a dividend of $5.75 per share, and that dividend is expected to...

Schnus Corporation just paid a dividend of $5.75 per share, and that dividend is expected to grow at 20 percent each year for the next two years, and at constant rate of 8.50% per year thereafter. The company’s beta is 1.50, the required return on the market is 12.50%, and the risk-free rate is 2.40%. Calculate the company’s intrinsic value.
thankyou !
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Mature Conglomerate Corporation (MCC) just paid a dividend of $1.49 per share, and that dividend is...
Mature Conglomerate Corporation (MCC) just paid a dividend of $1.49 per share, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.55, the required return on the market is 12.50%, and the risk-free rate is 4.00%. What is the intrinsic value for MCC’s stock? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer...
Mature Conglomerate Corporation (MCC) just paid a dividend of $1.49 per share, and that dividend is...
Mature Conglomerate Corporation (MCC) just paid a dividend of $1.49 per share, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.25, the required return on the market is 12.50%, and the risk-free rate is 4.00%. What is the intrinsic value for MCC’s stock? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer...
A company has just paid a dividend of $ 2 per share, D0=$ 2 . It...
A company has just paid a dividend of $ 2 per share, D0=$ 2 . It is estimated that the company's dividend will grow at a rate of 15 % percent per year for the next 2 years, then the dividend will grow at a constant rate of 5 % thereafter. The company's stock has a beta equal to 1.4, the risk-free rate is 4.5 percent, and the market risk premium is 4 percent. What is your estimate of the...
A Corporation will a dividend of $8.00 per share, and that dividend is expected to grow...
A Corporation will a dividend of $8.00 per share, and that dividend is expected to grow at a constant rate of 5% per year in the future. The company’s beta is 1.50, the market return is 6.50%, and the risk-free rate is 3.50%. What is the company’s current stock price? A. $280.00 B. $96.97 C. $266.67 D. $101.82 Answers D is incorrect. which one is correct and why?
A company, GameMore, has just paid a dividend of $2 per share, D0=$ 2 . It...
A company, GameMore, has just paid a dividend of $2 per share, D0=$ 2 . It is estimated that the company's dividend will grow at a rate of 15% percent per year for the next 2 years, then the dividend will grow at a constant rate of 6% thereafter. The company's stock has a beta equal to 1.4, the risk-free rate is 4.5 percent, and the market risk premium is 4 percent. What is your estimate of the stock's current...
The Kosten Warenhaus just paid a dividend of $2.00 (D0 = $2.00)per share, and that dividend...
The Kosten Warenhaus just paid a dividend of $2.00 (D0 = $2.00)per share, and that dividend is expected to grow at a constant rate of 7.50% per year in the future. The company’s beta is 0.93, the market return is 9.0%, and the risk-free rate is 4.00%. 1. What is the required return on the stock, rs? [Hint: Kj=Krf + B(Km – Krf)] 2. What is the company’s current stock price?
Contact Corporation just paid a dividend of $1.50 per share. The company expects that the dividend...
Contact Corporation just paid a dividend of $1.50 per share. The company expects that the dividend will grow at a rate of 10% for the next two years. After year two it is expected that the dividend will decline at a rate of 3% indefinitely. If the required return is 12%, what is the value of a share of stock?
El Taco Tote just paida dividend of D0= $1.75 per share, and that dividend is expected...
El Taco Tote just paida dividend of D0= $1.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The company's beta is 1.50, the required return on the market is 9.50%, and the risk-free rate is 3.50%. What is the company's current stock price?
-Weston Corporation just paid a dividend of $3.25 a share (i.e., D0 = $3.25). The dividend...
-Weston Corporation just paid a dividend of $3.25 a share (i.e., D0 = $3.25). The dividend is expected to grow 12% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years? D1 , D2, D3, D4, D5 - Tresnan Brothers is expected to pay a $1.70 per share dividend at the end of the year (i.e., D1 = $1.70). The dividend is...
Widget Manufacturers Inc. just paid a $3 per share dividend. It is expected that dividends will...
Widget Manufacturers Inc. just paid a $3 per share dividend. It is expected that dividends will grow at 10.00% per year for the next 2 years, at 6.00% the third year and 3.00% every year thereafter. Widget’s’ equity beta is 0.90, while the risk-free rate is 3.20% per year and the market risk premium is 6.00% per year. Based on this information, compute the price per share of Widget stock. Round your answer to the nearest penny. For example, $2,371.243...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT