Apple Inc. (AAPL) is expected to pay a dividend of $1.59 at the end of the year. AAPL’s dividend payout ratio and return on equity (ROE) are 41.27% and 6.86%, respectively. Other things held constant, what would AAPL’s stock price be if the required rate of return is 6.47%? A. $93.14 B. $84.97 C. $72.26 D. $65.13

Q: Which of the following statements is NOT correct?

A: Cost of Equity: It is the minimum return acceptable by the equity investors for investing in the…

Q: orenson Corp.'s expected year-end dividend is D1 = $4.00, its required return is rs = 11.00%, its…

A: Given: Dividend(D1) = $4.00 Required return(k) =11% Dividend yield = 6% ; Dividend yield = Dividend…

Q: A firm pays a 5.80 dividend at the end of year one (d1), has a stock price of 103, and a constant…

A:

Q: What is the expected annual capital gain yield for Orange Corp stock, based on the Dividend Discount…

A: Here,ExpectedDividend is $8.37Growth Rate is 13.41%Required Return is 17.73%

Q: Company Z-prime's earnings and dividends per share are expected to grow by 3% a year. Its growth…

A: Next year dividend = $9Growth rate (Year 1-Year 4) = 3%Next year EPS = $16Market capitalization rate…

Q: Fester Industries’ common stock is currently selling for $30.00 per share. Next year’s dividend (D1)…

A: Price of the stock is the current selling price of the stock that can be determined by Gordon Growth…

Q: Jarett & Sons's common stock currently trades at $38.00 a share. It is expected to pay an annual…

A: Given, Current Market Price = $38 D1 = $2.75 Growth rate = 7%

Q: The Evanec Company's next expected dividend, D1, is $2.94; its growth rate is 6%; and its common…

A: To apply the constant dividend growth model, 2 requirements have to be fulfilled:(1) The growth rate…

Q: 1. If the dividends to be paid in one year from now on a common stock issue are $3.8 per share…

A: Given:Dividends to be paid in one year (D​): $3.8 per shareCurrent price of the stock (P):…

Q: Jarett & Sons' common stock currently trades at $34.00 a share. It is expected to pay an annual…

A: a. 11.41 %b. 12.01 % Explanation:Step 1: What is the cost of equity?Cost of Equity is the rate of…

Q: Jarett & Sons's common stock currently trades at $32.00 a share. It is expected to pay an annual…

A: a. Cost of equity = (D1/share price)+ Dividend growth rate Cost of equity = ($1/$32) + 6% Cost of…

Q: The Evanec Company's next expected dividend, D1, is $3.30; its growth rate is 6%; and its common…

A: The cost of Retained Earnings is the required rate of return to the shareholders when a company uses…

Q: Krell Industries has a share price of $22.32 today. If Krell is expected to pay a dividend of $1.07…

A: Current stock price (P0) = $22.32 Expected dividend (D1) = $1.07 Price after 1 years (P1) = $23.71

Q: Goode Inc.'s stock has a required rate of return of 12.00%, and it sells for $27.00 per share.…

A: This is based on the dividend discount model.As per the dividend discount model the value of a stock…

Q: A firm recently paid a $13.50 annual dividend. The dividend is expected to increase by $ 0.50 in…

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

Q: A stock price is expected to pay a year-end dividend of 2.00$. The dividend is expected to decline…

A: Computation:

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A: In the given case, we have provided the expected dividend at year 1 (D1) , required rate of return…

Q: Tangshan China's stock is currently selling for $160.00 per share and the firm's dividends are…

A: Given details are as follows: Stock Price = $160 Recent dividend (D0) = $2.10 Growth rate (g) = 6% =…

Q: ummerdahl Resort's common stock is currently trading at $23 a share. The stock is expected to pay a…

A: We will use the below formula to calculate the cost of common equity   Cost of common equity =…

Q: Jarett & Sons' common stock currently trades at $31.00 a share. It is expected to pay an annual…

A: a) Cost of Equity=0.088or8.8%b) Cost of Equity=0.096or9.6%      Explanation:The calculation of the…

Q: The Evanec Company's next expected dividend, D1, is $2.83; 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: Jenson Co. just paid a $10.18 dividend.  The company's dividends are expected to grow at a…

A: Stock price is the price which a shareholder must pay in order to become an owner of the company.…

Q: McCracken​ Roofing, Inc., common stock paid a dividend of ​$1.34 per share last year. The company…

A: The required rate of return can be calculated as per the dividend discount model.

Q: The last dividend of Delta, Inc. was $13.57, the growth rate of dividends is expected to be 4.17…

A: The DDM refers to the model that considers the dividends paid as the best indicators of the…

Q: Suppose simons corp just paid a dividend of $4.30. The company and its dividends are growing at a…

A: Dividend Paid (D0) = $4.3 Dividend growth rate = 3.6% Required return for stock (Ke) = 10.8%

Q: Ackert Company's last dividend was $4.75. The dividend growth rate is expected to be constant at…

A: The Dividend Growth Rate (DGR) is a crucial metric indicating the annualized rate at which a company…

Q: Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be…

A: The dividend discount model will be used here. As per the dividend discount model the current value…

Q: What is the expected annual capital gain yield for Orange Corp stock, based on the Dividend Discount…

A: Total required rate of return (r) = 14.82% or 0.1482Growth rate of dividends (g) = 10.45% or…

Q: Apple Inc. is expected to pay a dividend of $1.57 at the end of the year. The required rate of…

A: To calculate the stock's price we will use the below formula   Stock's price = D1/(r-g) Where D1 -…

Q: What is the expected annual capital gain for Orange Corp stock, based on the Dividend Growth Model?…

A: The capital gain yield is the annual percentage increase in the price of the stock. In the case of a…

Q: The XYZ Company paid $1.95 dividend yesterday. Its dividend growth rate is expected to be constant…

A: Share price is the current market price of the share. It is the price of the share at the any…

Q: A stock is expected to pay a year-end dividend of $2.00 a share (D1 = $2.00).  The dividend is…

A: The required rate of return on a stock represents the minimum return investors willing to accept for…

Q: A firm's common stock is currently selling for $78 per share. Last year's dividend payment was $2.50…

A: The question is based on the concept of Financial Management.

Q: A company's last dividend was $1.25. The dividend growth rate is expected to be constant at 27.5%…

A: