The Yempy Corp. is recently paid a dividend of $2. The dividends are expected to grov at 20% for next 4 years due to technological advanced and thereafter, the growth rate settles down to 2% for ever. The risk-free rate is 2.2% and the market risk premium is 6%. If the beta of the stock is 1.3, what must be the current selling price of the company's stock? Calculate the current selling price of the stock. (A) The current selling price of the stock is $31.05 (B) The current selling price of the stock is $25.08 (C) The current selling price of the stock is $35.07 (D) The current selling price of the stock is $36.72

The Yempy Corp. is recently paid a dividend of $2. The dividends are expected to grov at 20% for next 4 years due to technological advanced and thereafter, the growth rate settles down to 2% for ever. The risk-free rate is 2.2% and the market risk premium is 6%. If the beta of the stock is 1.3, what must be the current selling price of the company's stock? Calculate the current selling price of the stock. (A) The current selling price of the stock is $31.05 (B) The current selling price of the stock is $25.08 (C) The current selling price of the stock is $35.07 (D) The current selling price of the stock is $36.72

Name: The Yempy Corp. is recently paid a dividend of $2. The dividends are
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Description: The Yempy Corp. is recently paid a dividend of $2. The dividends are expected to growat 20% for next 4 years due to technological advanced and thereafter, the growth ratesettles down to 2% for ever.The risk-free rate is 2.2% and the market risk prem

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 16P: Crisp Cookware’s common stock is expected to pay a dividend of $3 a share at the end of this year...

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A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate, g, throughout time. The stock’s required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of gL?
The Yempy Corp. is recently paid a dividend of $2. The dividends are expected to grow at 20% for next 4 years due to technological advanced and thereafter, the growth rate settles down to 2% for ever. The risk-free rate is 2.2% and the market risk premium is 6%. If the beta of the stock is 1.3, what must be the current selling price of the company's stock? Calculate the current selling price of the stock. The current selling price of the stock is $36.72 The current selling price of the stock is $35.07 The current selling price of the stock is $25.08 O The current selling price of the stock is $31.05
The Yempy Corp. is recently paid a dividend of $2. The dividends are expected to grow at 20% for next 4 years due to technological advanced and thereafter, the growth rate settles down to 2% for ever. The risk-free rate is 2.2% and the market risk premium is 6%. If the beta of the stock 1.3, what must be the current selling price of the company's stock? Calculate the current selling price of the stock. (A)The current selling price of the stock is $31.05 (B) The current selling price of the stock is $25.08 (C) The current selling price of the stock is $35.07 (D)The current selling price of the stock is $36.72 Answer A.
The Yempy Corp. is recently paid a dividend of $2. The dividends are expected to grow at 20% for next 4 years due to technological advanced and thereafter, the growth rate settles down to 2% for ever. The risk-free rate is 2.2% and the market risk premium is 6%. If the beta of the stock is 1.3, what must be the current selling price of the company's stock? Calculate the current selling price of the stock.
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