Week 4 - Dharmin Shah - Section 70

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School

University Canada West *

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623

Subject

Finance

Date

Feb 20, 2024

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xlsx

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14

Uploaded by DoctorSalamanderMaster950

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Dividend $ 1.89 Rate 5% Price $ 38.00 Dividend Yield 4.97% Capital Gain Yield 5% Total Required Return 9.97% Required Return is approximately 10%
Dividend $ 3.40 Require Ret. 11% G. Dividend 4.5% Price $ 52.31 I will pay approximately $52.31 for the stock.
Dividend per year $ 9.75 Required rate 10% Years 11 FV $ 8.86 PV $ 63.33 Current share price is $63.33
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Year Dividend I DPS PV at 11% 1 3+5 8 7.207207 2 8+5 13 10.55109 3 13+5 18 13.16144 4 18+5 23 15.15081 5 23+5 28 16.61664 $62.69 $ 62.69 should be paid for a share today if the required rate of return is 11%.
Particular Amt Dividend on 10th year 12 growth 5% Required rate 13.50% Rate on 9th year 141.1765 PV $45.16 Current share price is $45.16 14. Non-Constant Growth (LOI) Foxtrap Bearings Inc is a young start-up company No dividends will be paid on th
he stock over the next nine years because the firm needs to plow back its earnings to fuel growth The compan
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ny will pay a $12 per share dividend in ten years and will increase the dividend by 5% per year thereafter If th
he required return on this stock is 13.5%, what is the current share price
D1 $0 Years Dividend PV Req Return 10% 1 $0.04 $0.04 g 30% 2 $0.06 $0.05 g 30% 3 $0.08 $0.06 g 30% 4 $0.09 $0.06 g 20% 5 $0.10 $1.63 g 6% $1.84 Approximately projected dividend is $1.84.
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Q17. Supernormal Growth (LO1) Duffs Co. is growing quickly. Dividends are expected to grow at a 24% rate for the next three years, with the growth rate falling off to a constant 6% thereafter. If the required return is 11% and the company just paid a $1.90 dividend, what is the current share price? D0 $1.90 24% 6% 11% g1 calculat 1.24 Year 3 $76.80 Year 0 $63.30 Current share price is $63.30 g1 g2 r
Current Stock Price (P0): $64 Required Return (r): 10% Dividend Growth Rate (g): 4.50% Return on investment $3.37 Most recent dividend per share paid on the stock is $3.37.
Item Value Current Value $9.40 Expected Divi -0.04 RRR 0.1 Next Year's Div $9.02 Current Share $64.46 Share price today is $64.46 19. Negative Growth (LOI) Foxtrap Inc is a mature manufacturing firm. The company just paid a $9 40 dividend, bu
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ut management expects to reduce the payout by 4% per year indefinitely. If you require a 10% return on this
s stock what will you pay for a share today?