Paychex Inc. (PAYX) recently paid a dividend of $0.78. The dividend is expected to grow at a 15 percent rate. The current stock price is $46.11. What is the return shareholders are expecting
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Problem 8-22 Expected Return (LG8-5)
Paychex Inc. (PAYX) recently paid a dividend of $0.78. The dividend is expected to grow at a 15 percent rate. The current stock price is $46.11.
What is the return shareholders are expecting
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- Conroy Consulting Corporation (CCC) has a current dividend of D0 = $2.5. Shareholders require a 12% rate of return. Although the dividend has been growing at a rate of 30% per year in recent years, this growth rate is expected to last only for another 2 years (g0,1 = g1,2 = 30%). After Year 2, the growth rate will stabilize at gL = 7%. What is CCC’s stock worth today? What is the expected stock price at Year 1? What is the Year 1 expected (1) dividend yield, (2) capital gains yield, and (3) total return? What is its expected dividend yield for the second year? The expected capital gains yield? The expected total return?Suppose Barclay Corp is expected to pay a dividend of $2.50 at the end of the year. f the company and its dividends are growing at a relatively constant rate of 3.5% and Investors required return on the stock is 10.2%, what is the value of the stock? O$37.31 O $24.47 O$25.37 O $24.51 O$38.62 Page 13 of 30 Previous Page Next Page 0gf30.guestions.saved.Question 8: The last dividend paid by ABC company is 5 TL. The dividend is expected to grow by 4% next year, 6% in the second year, % 3 third year and 2% in the following years. If the expected return rate of investors (k) is 10%. What is the value of this stock today (P0)?
- Synovec Company is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next 3 years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 11 percent and the company just paid a $2.30 dividend. what is the current share price? Multiple Choice C $61.80 $63.04 $60.57 #56 513 The common stock of Auto Deliveries sells for $28.16 a share. The stock is expected to pay $1.35 per share next year when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 3 percent annually and expects to continue doing so. What is the market rate of return on this stock? 20.14 percent 7.79 percent 7.42 percent 19.67 percent OC OD A. B C₁ D Ο Α OBProblem 1. Ferry Motors' common stock just paid its annual dividend of $1.80 per share. The required return on the common stock is 12%. Estimate the value of the common stock under each of the following assumptions about the dividend: a. Dividends are expected to grow at annual rate of 0% to infinity. b. Dividends are expected to grow at a constant annual rate of 5% to infinity. C. Dividends are expected to grow at an annual rate of 5% for each of the next 3 years, followed by a constant annual growth rate of 4% in years 4 to infinity.
- Expected Return Circuit City Stores (CC) recently paid a $.21 dividend. The dividend is expected to grow at a 23.50 percent rate. At the current stock price of $8.46, what is the return shareholders are expecting?> Question 8 ABC,. Inc just paid a dividend of $36.98. The dividends are expected to grow by 22% in Years 1-3. After that, the dividends are expected to grow by 1% each year. If the required rate of return is 18%, what is today's price of the stock? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.Question 7. Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on CCN is 12% and that the expected dividend per share in one year is $0.50. CCN has just paid a dividend, so the next dividend is the $0.50 to be paid one year from now. Calculate today's price per share fo CCN. *Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.
