Assume HighlineHighline Company has just paid an annual dividend of $0.91. Analysts are predicting an 10. 9% per year growth rate in earnings over the next five years. After then, HighlineHighline's earnings are expected to grow at the current industry average of 5.6 % per year. If HighlineHighline's equity cost of capital is 7.7% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict HighlineHighline stock should sell? Question content area bottom Part 1 The value of HighlineHighline's stock is your response here. (Round to the nearest cent.) enter
Assume HighlineHighline Company has just paid an annual dividend of $0.91. Analysts are predicting an 10. 9% per year growth rate in earnings over the next five years. After then, HighlineHighline's earnings are expected to grow at the current industry average of 5.6 % per year. If HighlineHighline's equity cost of capital is 7.7% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict HighlineHighline stock should sell? Question content area bottom Part 1 The value of HighlineHighline's stock is your response here. (Round to the nearest cent.) enter
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Assume HighlineHighline Company has just paid an
annual dividend of $0.91. Analysts are predicting an 10.
9% per year growth rate in earnings over the next five
years. After then, HighlineHighline's earnings are
expected to grow at the current industry average of 5.6
% per year. If HighlineHighline's equity cost of capital is
7.7% per year and its dividend payout ratio remains
constant, for what price does the dividend-discount
model predict HighlineHighline stock should sell?
Question content area bottom
Part 1
The value of HighlineHighline's stock is
your response here. (Round to the nearest cent.)
enter
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