Questions Pay di ponents eve hotal return a share which do think ically at on Re
ID: 2731804 • Letter: Q
Question
Questions Pay di ponents eve hotal return a share which do think ically at on Referring to the the dividend s wwwe dividends and the growth rate Price of the stock are LON) when in comes to mula present voting in elections, what ferences between corporate in t value of a share of (LO3) is doa) suppose a company has a preferred stock issue and which do you think will h have a S2 unfair or unethical for corporations to create sses of stock with unequal votiivg rights (102) Some companies. such as Canadian Tire, have created a classes of stock with no voingrights at all. Why would invest ave highe or a share of the price, a share of the Questions and Problems avestions Stock values (LOI) The topperside wardrobe C just paid a dividend of s195 per share on its sock The dividends at expected to grow at a constant rate of 6 Co. stock. what is stock values o the current price What will the price years? maintain a 5 1) The next be in three years? The dividends are anticipated to percent growth payment by Inc. be s2.10 per share. rate fore the stock current sells for 18.00 per share, what is the required return? ver. ly Stock values (Loi) For the company in the previous problem, what is the dividend yield? What is the expected capital gains Stock values (LOI) Torbay Corporation wi dividend by 3.8 percent per year indefinitely. If you require an 11 percent return on your investment, how much will you pay f the company's stock today? 5. Stock Valuation (LO1) Glenhill Co. is expected to maintain a constant 5.2 percent growth rate in its dividends indefinitely. the company has a dividend yield of 6.3 percent, what is the required return on the company's stock? 6. Stock valuation (LOL) suppose you know that a company's stock currently sells per share and the required r on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends what is the current dividend per share? 7. Stock Valuation (LOI) Goulds Corp. pays a constant on this stock is 10 percent the next 11 years and will then cease paying dividends forever. If the required return what is the current share price? outstanding that pays assso dividendevery Valuing Preferred Stock (Lon Big Pond Inc. has an issue of stock return? nth rel, for clos per share, what is the requiredExplanation / Answer
GIVEN
DIVIDEND YIELD
= 11% / 2
= 5.5%
(DIVIDEND NEXT) / CURRENT PRICE= 0.055
(DIVIDEND NEXT) / $47 = 0.055
DIVIDEND NEXT = 0.055 * $47
DIVIDEND NEXT = $2.585
CURRENT DIVIDEND
= DIVIDEND NEXT / (1 + DIVIDEND YEILD)
= $2.585 / (1 + 0.055)
= $2.45
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.