6. Assume that company Otto currently pays out a dividend of £8 per share and dividends are expected to grow at a rate of 5% per year. The cost of equity for company Otto is 10%. What is the share price of company Otto? O O 5 6 12 ܩ 16 8 21 0

Q: 5. In one year, Bold Betties Inc. will pay a $2 per share dividend and it is expected to grow by 5…

A: The dividend discount model suggests that the intrinsic price of the share is the present value of…

Q: 4. You expect RMT company will have earnings per share of AED 10 this year and expect that they will…

A: Dividend is the part or share of profits being distributed to the shareholders. Dividend growth rate…

Q: Q6 A company’s cost of equity is 12% and its share is quoted in the market at OMR 40 currently. If…

A: The formula used is shown:

Q: A company pays an annual dividend of 15 USD. There is no growth in the amount of dividends and the…

A: Dividend discount model estimate the stock price. Where there is no growth rate, stock price can be…

Q: .  Mimi’s common stock sells for P25 per share, its last dividend was P2.50, Mimi should pay P2.50…

A: next dividend = 2.5 (1 + 0.05) = 2.625 Price after flotation cost = 25 - 2.5 = 22.5 Expected return…

Q: The next dividend payment by Skippy, Inc., will be $1.56 per share. The dividends are anticipated to…

A: When you invest in the stock market there are two types of benefits one is dividend payment and…

Q: Tresnan Brothers is expected to pay a $2.30 per share dividend at the end of the year (i.e., D1 =…

A: In this we have to use constant dividend growth model.

Q: Spice, Inc. just paid a dividend of $1.80 per share. The dividends are anticipated to maintain a 4.5…

A: The expected rate of return on stock refers to the total amount of return that is being provided by…

Q: 8. Consider a share of equity in the Aphrodite Conglomerate. In two years, it is expected to be…

A: The dividend in year 1 is $4, and in year 2 is $5.The price of the equity in year 2 is $85.

Q: Q4 NoGrowth Corporation currently pays a dividend of $0.59per quarter, and it will continue to pay…

A: Price per share refers to the market price per share when dividend income is discounted against the…

Q: Pacific Corporation just paid an annual dividend of $2.00 per share on its common stock. Dividends…

A: In this we need to use constant growth model for the prices of equity.

Q: Suppose XYZ Corp. paid $20 in dividend this period, dividend growth is 5%, and your rate of time…

A: Current dividend (D0) = $ 20 Growth rate (g) = 5% Required rate of return (r) = 15%

Q: A company has just paid a $1.00 dividend per share and dividends are expected to grow at a rate of…

A: Use the Gordon Growth Model, which is a formula used to calculate the intrinsic value of a stock…

Q: 9. VOL stock has just paid a dividend (DO) of $4.00 per share. Dividends are expected to grow at 5%…

A: Investors may consider dividend payments as an important factor when evaluating a stock as they…

Q: am. 112.

A: The objective of this question is to calculate the value of a stock today based on the Gordon Growth…

Q: The Evanec Company's next expected dividend, D₁, is $3.55; its growth rate is 6%; and its common…

A: The cost of capital is the cost of using funds in the business. This may be in the form of equity or…

Q: scn.3

A: The objective of the question is to calculate the current share price of Art Plc. considering the…

Q: 15- The share capital of a firm is OMR 160000 and the net profit is OMR 32000. What is the return on…

A: The answer is option (c) [i.e, 20 percent ] Refer step 2 for explanation.

Q: The stock price of Aircraft Ltd, stood at $56.5. The company pays an annual dividend of $2 per…

A: Stock Price (P0) = $56.5Current Dividend (D0) = $2Constant growth rate (g) = 6% or 0.06

Q: Suppose Acap Corporation will pay a dividend of $2.79 per share at the ye share next year. You…

A: Price of stock would be present value of dividends and expected future price of stock and also that…

Q: Given the following information, what is the terminal (horizon) value of the company? The company…

A: Terminal value, in the context of the Dividend Discount Model (DDM), refers to the present value of…

Q: Which of the following dividend policies would be least appropriate for a company with a large…

A: According to the rule, because you hav eposted multiple questions, we will answe rthe first question…

Q: Whited Inc.'s stock currently sells for $39.00 per share. The dividend is projected to increase at a…

A: current price (P0) = $39.00Growth rate (g) = 3.75% per yearRequired return= 11.50%

Q: Maynard Steel plans to pay a dividend of $3.06 this year. The company has an expected earnings…

A: Current Stock Price :— It is the current selling price of stock in the market.    Stock price is…

Q: 4. Company X does not plow back any earnings and is expected to produce a level dividend stream of…

A: Cost of equity Capital = Dividend for next year / share price  + growth rate  Since the company does…

Q: 19. Chelsea Fashions is expected to pay an annual dividend of $0.80 a share next year. The market…

A: The dividend discount model is used by investors to determine the price of stocks. The stocks are…

Q: 17. A firm is currently paying a dividend of $3 per share. It is expected to grow its dividend at…

A: The stock price, also known as the share price or equity price, is the current market value of one…

Q: Macy's Corporation next annual dividend is expected to be $0.76, and its current stock price is…

A: Next year dividend (D1) = $0.76Current stock price (P) = $55.25Cost of capital (r) = 8%Assuming…

Q: 9. Bold Betties Inc. currently pays a $2 per share dividend and it is expected to grow by 5 percent…

A: According to bartleby guidelines , if multiple questions are asked , then 1st question needs to be…

Q: Meralco has earnings per share of P10.  It is expected that the company’s stock should sell at 3…

A: Market price of share can be calculated by earnings per share multiply with number of time selling…

Q: Gizzly plc is a publicly traded company in stable growth, expecting to grow at 4% a year in…

A: Growth rate = 4% Return on Equity = 10% Cost of Equity = 8% Intrinsic P/E Ratio = ?

Q: C7 Taylor Corp. is experience rapid growth in their core business. They expect to see dividends grow…

A: Current price of stock is the price which can be paid for purchase of the stock. It is also called…

Q: From the following information of two companies. Compar Xy P/E ratio is 10. Company Xz P/E is 4. The…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Epsilon Eridani is expected to have a dividend per share next year (DPS1) of $6. Analysts expect…

A: Dividend discount model is a security valuation method that is used to forecast the price of the…

Q: Kk.113. what is the expected price per share in 4 years? last dividend per share $4, dividend…

A: Dividend - This is the amount which is paid by the company to its shareholders. Dividend includes…

Q: What is the cost of preferred equity?

A: Cost of preferred stock is the rate of return derived from the preference stock by the…

Q: 10. Ryan's stock is currently selling for $50.00. It is expected to pay a year-end dividend of…

A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…

Q: Krell Industries has a share price of $22.58 today. If Krell is expected to pay a dividend of $0.93…

A: Dividend yield = Dividend expected to pay / current share priceEquity cost of capital = Expected…

Q: he current market price of an equity share of a company is OMR 70. The expected dividend per share…

A: Under Gordons model Market Price of a share  =  Expeted dividend  /  (cost of capital - growth rate…

Q: Matilda Industries pays a dividend of £2.10 per share and is expected to pay this amount…

A: Solution: Given, Dividend paid per share =D0 = £2.10 As given in the question, Expected dividend…

Q: 24. Zero-Sum Enterprise has just now paid a dividend of S8.00 per share (DO); the dividends are…

A: In this question we requires to calculate Current value of Stock of Zero-Sum Enterprise. We can…

Q: 3.4-3.5 Corporation B's stock is expected to pay a dividend of $5 per share at t=1. Its equity cost…

A: Dividend growth model is used to value the stock price of share and the implied growth rate of…

Q: Gamma Corporation just paid a dividend of $3.00 per share on its common stock. Dividends are…

A: Value of the share is the sum of the present value of all the dividends.

Q: Avril will pay a dividend of $2 per share starting from year 6 and the growth rate is 10%, assume no…

A: When the company receives profits and distributes them among the shareholders. That share of profit…

Q: Easttown Productions just paid an annual dividend of $7.85 per share. Future dividends are expected…

A: Dividend discount model is one of the method used for calculating stock price. It uses next year…

Q: Luther Industries has a dividend yield of 3.5% and a cost of equity capital of 12%. Luther…

A: Dividend yield = Dividend / Price

Q: 1. A company has just declared dividend of GH¢50 per share and this is yet to be paid. The dividend…

A: The Cost of equity is the return a company requires to decide if an investment meets capital return…