Bright way Industries has a current stock price of $90.25. The company is expected to pay a dividend of $4.50 next year. Analysts estimate the company's growth rate at 10.5%- Calculate the expected return for Bright way Industries.
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- Company BestWare is expected to pay a dividend of $5.14 next year, and the company's stock is currently selling at $59.88. The company's WACC is 12.15%. What's the company's capital gains yield?Universal Forest’s current stock price is $64.00 and it is likely to pay a $0.47 dividend next year. Since analysts estimate Universal Forest will have a growth rate of 13.6 percent, what is its required return? (Round your answer to 2 decimal places.)Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $2.25 at the end of the year. Its dividend is expected to grow at a constant rate of 9.00% per year. If Walter’s stock currently trades for $26.00 per share, what is the expected rate of return?
- The Data General Company is expected to pay an annual dividend of $2.53 at the end of the year. Their growth rate is 8% annually. You find that their stock is currently trading at $35.00. What must be their required rate of return?Dollar Tree Inc (DLTR) is expected to pay a $1.85 dividend, and it is expected to grow at 9.85% for the next 3 years. After 3 years the dividend is expected to grow at the rate of 5.15% indefinitely. If the required return is 8.15%, what is DLTR's stock value today?Simon Fixtures Corp. is expected to pay $2.00 per share in dividends at the end of the year. The growth rate in dividends is expected to be constant at 8% per year. If the stock is selling for $50 per share, what is the required rate of return?
- The stock of Nogro Corporation is currently selling for $10 per share. Earnings per share in the coming year are expected to be $2. The company has a policy of paying out 50% of its earnings each year in dividends. The rest is retained and invested in projects that earn a 20% rate of return per year. This situation is expected to continue indefinitely. a. Assuming the current market price of the stock reflects its intrinsic value as computed using the constant-growth DDM, what rate of return do Nogro’s investors require?b. By how much does its value exceed what it would be if all earnings were paid as dividends and nothing were reinvested?c. If Nogro were to cut its dividend payout ratio to 25%, what would happen to its stock price?d. What if Nogro eliminated the dividend?Louis Company expects to pay dividends next year for $ 4. The dividend growth rate for the next 3 years is estimated at 15% per annum, after which the dividend growth rate is expected to be the same as the industry average of 5% per annum. If the expected rate of return (required return) is 18% per year, calculate the stock value of Louis CompanyWest Tech Inc. has an expected dividend next year of $3.20 per share, a growth rate for dividends of 8 percent, and a required return of 15 percent. What is the value of a share of West Tech's common stock?
- Paccar’s current stock price is $48.20 and it is likely to pay a $0.80 dividend next year. Since analysts estimate Paccar will have an 8.8 percent growth rate, what is its required return? (Round your answer to 2 decimal places.)Bavarian Sausage is expected to pay a dividend of $1.1 per share at the end of the year, and that dividend is expected to grow at a constant rate of 1% per year in the future. The company's expected annual return is 7%. What is the company's current stock price in $?A company's current stock price is $65.40 and it is likely to pay a $2.25 dividend next year. Since analysts estimate the company will have an 11.25 percent growth rate, what is its expected return?