You have just purchased a share for $29.33. The company is expected to pay a dividend of $0.57 per share in exactly one year. If you want to earn a 10.7% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?
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A: In this we need to use constant growth rate formula to calculate fair value of equity.
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A: 1 : The 12% return if the share price is 22/share = 22 * 12% = 2.64 That means on investing 22…
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A: Formulas:
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Q: Assume Evco, has a current stock price of $51.07 and will pay a $1.95 dividend in one year, its…
A: Current price = present value of next dividend + present value of sale price of stock
Q: Eastern Electric currently pays a dividend of $1.64 per share and sells for $27 a share. a. If…
A:
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: You just purchased a share of SPCC for $95. You expect to receive a dividend of $7 in one year. If…
A: Total return includes dividend yield and capital gain yield
Q: A mature manufacturing firm just paid a dividend of $588 but management expects to reduce the payout…
A: Introudction : Dividend = 5.88 Growth rate reduced = 4.32% required return = 8.46% as per the above…
Q: Welders Limited has just paid a cash dividend of $4.00 per share. The required return on the stock…
A: In this we need to use constant growth model.
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A: If the company pays consistent dividend per year then the share value will be computed by dividing…
Q: Six months ago, you purchased 1,400 shares of ABC stock for $21.33 a share. You have received…
A: Given: Number of shares = 1,400 Purchase price = $21.33 Sale price = $24.47 Dividend = $0.6
Q: Ground Chuck Processing just paid its annual dividend of $1.25 per share. The firm recently…
A: Dividend paid = 1.25 Constant growth in dividends = 3% Required Return = 11.50%
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Q: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.6 million and…
A: given, forever dividend = $9.2 million r=13.3% outstanding shares = 4.8 million
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A: The cost of equity is the return an investor requires by investing in the equity shares of a…
Q: Zoom Enterprises expects that one year from now it will pay a total dividend of $4.6 million and…
A: Total amount to be spent on dividends and repurchase forever (A) = $9.2 million Cost of capital (r)…
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A: It is given that :current stock price - $104.82 Dividend (next yr)- $5.05 Price in 1 yr - $106.88
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A: Given Data: Required rate of return = 11.50% Selling price of share = $25 per share growth rate =…
Q: ou expect a share of stock to pay dividends of $3 in one year. After that dividends are expected to…
A: Required rate of return (Re) = 12% Growth rate for Year 1 and Year 2 = 10% Growth rate from Year 3 =…
Q: XYZ Inc’s most recent dividend was $20 per share. Dividends are expected to grow at an 9% annual…
A: Recent Dividend = 20 Growth rate = 9% Required rate of return = 15% Using Constant Growth Model,…
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A: Current share value : it means current price of share at which share is currently trading ( buying…
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A: Total Return - it means total earning on any security held for the time being, whether it is…
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A: Since there is no growth rate that is no growth in dividend price of stock = Dividend / Cost of…
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Q: Last year Artworks, Inc. paid a dividend of $1.75. You anticipate that the company’s growth rate is…
A: Formula:
Q: Veloo has just bought the common stock of XYZ company. The company expects to grow at the following…
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Q: Healthy Foods just paid its annual dividend of $1.62 a share. The firm recently announced that all…
A: Dividend discount model is a security valuation method which is used to forecast or predict the…
Q: A company with a share price of £5.50 and 500,000 shares plans to undertake an investment project…
A: GIVEN, D1=25pg=7%r=11%investment share price = 5.5shares = 500,000
Q: ou just purchased a share of SPCC for $101.You expect to receive a dividend of $6 in one year. If…
A: Dividend yield = dividend / current price
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A: Given: Von Bora expected dividend paid is $2.07 per share at the end of the year. $2.34 per share at…
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A: Calculation of value of the stock: Answer: Total value of stock is R47.33
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A: Note: It is a situation where multiple sub-parts have been asked, so we are allowed to solve the…
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- You have just purchased a share of stock for $21.11. The company is expected to pay a dividend of $0.53 per share in exactly one year. If you want to earn a 10.2% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?You have just purchased a share of stock for $20.29.The company is expected to pay a dividend of $0.52 per share in exactly one year. If you want to earn a 9.1% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $_______.(Round to the nearest cent.)You have just purchased a share of stock for $ 21.41. The company is expected to pay a dividend of $0.72 per share in exactly one year. If you want to earn a 9.4% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?
- Please use Excel to solve: You have just purchased a share of stock for $20. The company is expected to pay a dividend of $0.50 per share in exactly one year. If you want to earn a 10% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?You have just purchased a share of stock for $18.85. The company is expected to pay a dividend of $0.71 per share in exactly one year. If you want to earn a 9.1% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $. (Round to the nearest cent.) CYou have just purchased a share of stock for $ 21.41. The company is expected to pay a dividend of $0.72 per share in exactly one year. If you want to earn a 9.4% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $________? (Round to nearest cent)
- You have just purchased a share of stock for $21.73. The company is expected to pay a dividend of $0.62 per share in exactly one year. If you want to earn a 10.5% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $ nearest cent.) (Round to theYou just purchased a share of SPCC for $95. You expect to receive a dividend of $7 in one year. If you expect the price after the dividend is paid to be $115, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate? The total return you will have earned over the year is _____%. (Round to two decimal places.) Your dividend yield will be ____%. (Round to two decimal places.) Your capital gain rate will be _____%. (Round to two decimal places.)Suppose you bought XYZ stock 1 year ago for $6.54 per share and sell it at $2.79. You also pay a commission of $0.35 per share on your sale. What is the total return on your investment? The total return is %?
- You expect a share of EconNews.Com to sell for $69 a year from now. If you are willing to pay $70.09 for one share of the stock today, and you require a return of 7 percent, what dividend payment must you expect to receive from the stock?You just purchased a share of SPCC for $101. You expect to receive a dividend of $7 in one year. If you expect the price after the dividend is paid to be $113, what total return will you have earned over the year? What was your dividend yield? Your capital gain rate?You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $65.74 for one share of the stock today, and you assume the share is riskless but require a return of 8 percent, what dividend payment must you expect to receive from the stock?