Avril Synchronistics will pay a dividend of $1.10 per share this year. It is expected that this dividend will grow by 4% each year in the future. What will be the current value of a single share of Avril's stock if the firm's equity cost of capital is 13%? A. $8.55 B. $12.22 C. $13.44 D. $9.17

Q: Assume that Cola Co. has a share price of $42.88. The firm will pay a dividend of $1.14 in one year,…

A: Share price today (P0) = $42.88 D1 = $1.14 Growth rate (g) = 6.6% r = 8.4%

Q: Von Bora Corporation​ (VBC) is expected to pay a $2.25 dividend at the end of this year. If you…

A: value of stock can be found out by constant growth dividend discount model.

Q: Petron Corporation is expected to pay P3.50 per share dividend at the end of the year. The dividend…

A: The corporation  is expected to pay P3.50 per share dividend at the end of the year. The dividend is…

Q: IBM expects to pay a dividend of $6 next year and expects these dividends to grow at 3.92% a year.…

A: Cost of equity by dividend growth model: Cost of equity = D1/P0 + g D1 is expected dividend P0 is…

Q: Krell Industries has a share price of $22.32 today. If Krell is expected to pay a dividend of $1.07…

A: Current stock price (P0) = $22.32 Expected dividend (D1) = $1.07 Price after 1 years (P1) = $23.71

Q: Investors in IBM common stock expect the firm to pay a dividend next year of $1.79 per share.…

A: Next dividend (D1) = $1.79 Growth rate (g) = 6% Stock price (P0) = $76

Q: Please can I get detailed step by step workings for this question?

A: Formula to calculate share price is: Price per share = Enterprise value/shares outstanding…

Q: Summit Systems will pay a dividend of $1.48 this year. If you expect​ Summit's dividend to grow by…

A: Expected dividend (D1) = $1.48 Growth rate (g) = 5.3% Cost of capital (r) = 10.7%

Q: ZippleCrunch Corp. will pay a dividend of $2.34 per share at the end of next year (end of year 1)…

A: We will first calculate the dividend rate thereafter we will use that dividend to calculate the…

Q: BM expects to pay a dividend of $8 next year and expects these dividends to grow at 3.15% a year.…

A: IBM Share Price = Dividend Next Year / (Cost of Equity - Growth Rate)

Q: KFC is expected to have earnings per share of $4 this year and expect that they will pay out $1.50…

A: The expected growth rate can be referred to as the return expected by the investors from an…

Q: Suppose Acap Corporation will pay a dividend of $2.80 per share at the end of this year and a…

A: Dividend for year 1(D1) = $2.80 Dividend for year 2(D2) = $3.00 Stock Price after  2 years(P2) = $52…

Q: Rylan Industries is expected to pay a dividend of $5.80 year for the next four years. If the current…

A: A model that helps to evaluate the value of the stock with the assumption that the dividend will…

Q: Chelsea Fashions is expected to pay an annual dividend of $0.80 a share next year. Themarket price…

A: Annual Dividend =0.80 Current stock price = 22.40 Growth rate =5%

Q: 19. Chelsea Fashions is expected to pay an annual dividend of $0.80 a share next year. The market…

A: The dividend discount model is used by investors to determine the price of stocks. The stocks are…

Q: Krell Industries has a share price of $21.52 today. If Krell is expected to pay a dividend of $0.67…

A: Current stock price (P0)  = $21.52 Expected next dividend (D1) = $0.67 Stock price at the end of…

Q: Investors expect Danforth Technologies (DT) to have a stock price one year from now of $52 per…

A: Share price = $52 Dividend = $3 per share Cost of capital = 10%

Q: CX Enterprises has the following expected dividends: $1.11 in one year, $1.19 in two years, and…

A: Here we will use the dividend discount model. As per the dividend discount model the price of stock…

Q: Sinar Harapan Berhad just paid a dividend of RM3.20 per share yesterday. The financial analyst has…

A: The question is related to Dividend discount growth model. The price of share will be calculated…

Q: . HighGrowth Company has a stock price of $19. The firm will pay a dividend next year of $0.88​, and…

A: Next dividend  (D1) = 0.88 Current price (P0) = $19 Growth rate (G) = 4.1%

Q: Hurricane Corporation expects to grow its dividend by 5% per year. The current dividend is $2 per…

A: Given details are as below : Current dividend (D0) = $2 Growth rate (g) = 5% Required rate of return…

Q: Von Bora Corporation (VBC) is expected to pay a $2.75 dividend at the end of this year. If you…

A: Given information: Dividend : $2.75 Growth rate : 4% Cost of capital : 11%

Q: Krell Industries has a share price of $22.53 today. If Krell is expected to pay a dividend of $0.92…

A: According to the values provided in the question: p0=$22.53d1=$0.92p1=$24.43

Q: nterprises has the following expected dividends: $1.13 in one year $1.19 in two years, and $1.34 in…

A: Year 1 dividend = $ 1.13 Year 2 dividend = $ 1.19 Year 3 dividend = $ 1.34 Growth rate = 3.8% Year 4…

Q: Tresnan Brothers is expected to pay a $1.80 per share dividend at the end of the year (i.e., D1 =…

A: Current share value : it means current price of share at which share is currently trading ( buying…

Q: Sorensen Systems Inc. is expected to pay a $2.00 dividend at year end (D1 = $2.00), the dividend is…

A: wacc formula is given as: WACC =wd×kd×1-tax+we×kewhere,wd= weight of debtwe= weight of equitykd=cost…

Q: Gremlin Industries will pay a dividend of $1.65 per share this year. It is expected that this…

A: In the question, the value of the dividend to be paid, the growth rate and the stock price are…

Q: investors in IBM common stock expect the firm to pay a dividend next year of $1.97 per-share…

A: Gordon's growth model is one of the most commonly used variations of the dividend discount model.…

Q: Avril Synchronistics will pay a dividend of $1.50 per share this year. It is expected that this…

A: Computation of current value of share:Current value of share is $13.64.

Q: HighGrowth Company has a stock price of $22. The firm will pay a dividend next year of $0.97, and…

A: In this question we require to compute the cost of equity capital for HighGrowth. This question can…

Q: the dividend discount model what is the value of the Jasmine limited share if the firm's cost of…

A: The present value of a stock can be found using the two stage dividend discount model. Increase the…

Q: Von Bora Corporation​ (VBC) is expected to pay a $4.00 dividend at the end of this year. If you…

A: Value of a share of VBS stock = Dividend / (Required return - Growth rate) Dividend = $4.00 Required…

Q: Vaccine Development Corp (VDC) has a current stock price of $15.35 and is expected to trade for…

A: Under dividend growth model, valuation of common stock is done by assuming that dividends keep…

Q: Spacefood Products will pay a dividend of $2.15 per share this year. It is expected that this…

A: Expected Divided (D1) = $2.15Cost of Equity (Ke) = 14%Growth Rate (g) = 6% Calculation of Current…

Q: This year, Hope Corporation paid a dividend of $0.50 per share.  The company expect dividends to…

A: Value of share price = [D0 x (1 + g)]/(r - g) D0 = Current dividend g = Growth rate r = required…

Q: Cullumber Wok Co. is expected to pay a dividend of $1.70 one year from today on its common shares.…

A: Expected Dividend = $1.70 Growth Rate = 5% Current Stock Price =$17.00

Q: Assume Gillette Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect…

A: Using Dividend discount model

Q: The Alfa Ltd currently pays $4.00 of dividends per share of common stock. The required rate of…

A: The dividend discount model is the model of stock valuation that assumes that the stock price of a…

Q: Dreamline expects to earn $20 per share this year and intends to pay out $8 in dividends to…

A: The percentage of profits held in the company as retained earnings is known as the retention ratio.…

Q: IBM expects to pay a dividend of $8 next year and expects these dividends to grow at 4.17% a year.…

A: Cost of equity is the required rate of return on an investment in equity.

Q: Munich Re Inc. is expected to pay a dividend of $4.82 in one year, which is expected to grow by 4% a…

A: The weighted average cost of capital or WACC is one of the important financial concepts that is used…

Q: Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on…

A: Dividend per share in Year 1 = 0.50  Discount Rate = 12% Growth Rate = 9%

Q: Krell Industries has a share price of $22.79 today. If Krell is expected to pay a dividend of 1.19%…

A: Current stock price = $22.79 Dividend rate = 1.19% Growth rate = 23.33%