SG Ltd. has historically paid a dividend of $2.50 to its shareholders semi-annually. The company has decided however that it will only maintain this policy for two more years, after which they will switch to an annual dividend that follows the constant growth rate of dividend policy. Determine the current price of the stock if the annual dividend growth rate will be set to 2% by the company and the nominal rate of return in the market is 9%
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SG Ltd. has historically paid a dividend of $2.50 to its shareholders semi-annually. The company has decided however that it will only maintain this policy for two more years, after which they will switch to an annual dividend that follows the constant growth
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- Stag Corp. will pay dividends of $4.75, $5.25, $5.75 and $7 for the next four years. ($4.75 in year 1, $5.25 in year 2, etc.) Thereafter, the company expects dividends to grow at a constant rate of 7%. If the required rate of return is 15%, what is the current market price of the company's stock? (Do not round intermediate calculations, and round the final answer to two decimal places.) O $80.29 $69.42 O $100.63 O $93.63Mclver's Meals, Inc. currently pays a OMR2 annual dividend. Investors believe that dividends will grow at 20% next year, 12% annually for the two years after that, and 6% annually thereafter. Assume the required return is 10%. What is the current market price of the stock? Select one: O a. OMR69.30 O b.OMR75.20 O c. OMR66.60 O d. OMR60.80 O e. OMR54.99DDY Ltd currently does not pay a dividend to its shareholders but equity analysts expect that the company will start paying a $2.00 dividend in 3 years’ time. They expect this dividend to grow at an annual rate of 4% p.a. over the foreseeable future. If the required rate of return on DDY’s shares is 10% p.a. its share price today should be closest to: a.$26.05. b.$27.55. c.$33.33. d.$34.67.
- Whizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and the investors require a return of 12%. i) Compute the current stock price for Whizcom Inc.ii) What would be the likely stock price in year 5?iii) What would be per annum rate of return implied by a change in prices from time 0 to time 5?GMA corporation is preparing to issue common stock. The Chief Financial Officer is attempting to estimate GMR’s cost of new common stock. The next dividend is expected to be P4.25 and will be paid one year from now. The current market price reflects an 18% expected annual return on investors. Dividends are expected to grow at a constant 8% per year. Flotation costs on the new issue will be P 1.25 per share. GMR’s cost of new common stock is nearest: a. 18.30% b. 18.00% c. 19.25% d. 19.44%General Importers announced that it will pay a dividend of $2.00 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 6 years. Then, 8 years from today, the company will begin paying an annual dividend of $1.00 forever. The required return is 10.00 percent. What is the price of the stock today?
- Five Star Corporation will pay a dividend of $4.35 per share next year. The company pledges to increase its dividend by 5.5 percent per year, indefinitely. If you require a return of 9 percent on your investment, how much will you pay for the company's stock today? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Current stock priceORcell Co. has the following dividend policy. Next year, the company will pay a dividend of $3. In year 2 the company will pay a dividend of $2.75. After year 2, the company expects to decrease its dividend at a constant rate of 3% per year indefinitely. If the return required by share holders is 13%, what is the price of the stock today? answer must be 17.86A Company has announced Rs.7 dividend this year. According to investor’s expectations it would grow at the rate of 9% for next 3 years, then at the rate of 8% for next 3 years and then at the rate of 7% thereafter. However the required rate of return of investor prevailing in the market is 15%. The company is also intending to calculate the intrinsic value of its share to check whether its security is overpriced or not in the market with respect to its competitors in the same industry. Q) Calculate the intrinsic value of common share
- CEPS group is going to pay an annual divedend of 4.01 OMR a share on its common stock next year. This year, the company paid a dividend of OMR 3.75 a share. The company adheres to a constant rate of growth dividend policy. What will one share of this common stock be worth five years from now if the applicable discount rate is 9.5%?The Foreman Company’s earnings and common stock dividends have been growing at an annual rate of 5 percent over the past 10 years and are expected to continue growing at this rate for the foreseeable future. The firm currently (that is, as of year 0) pays an annual dividend of $5 per share. Determine the current value of a share of Foreman common stock to investors with each of the following required rates of return. Use a minus sign to indicate negative answers and NA to indicate undefined answers. Round your answers to the nearest cent. 14 percent$ 15 percent$ 16 percent$ 5 percent$ 3 percent$XYZ company's common shares are selling for P30.00 per share, and the company expects to set its next annual dividend at P1.50 per share. All future dividends are expected to grow by 6% per year, indefinitely. In addition, XYZ faces a floatation cost of 20% on new equity issues. What is the floatation-adjusted cost of equity? Express your answer in percentage.