Common stock value: Constant growth Seagate Technology is a global leadur in data storage nolutins and a hegh-yeld dividend payer From 2015 through 2019, Seagate paid he wing per ahare dvidendYear20192018201720162015Dividend per share$7 492241831.221.53Assume that the historical annual grewth rate of Seagate dividends in an accurate estimale of te ure constant annaal dividend growth rate Use a 19% equired rate of rotum ta fed te value of Seagate's stackImmediately after it paid its 2019 dividend of $2 49The vakue of Seagate's stock is(Round to the nearest cent)

Given information: Dividends in 2019 is $2.49 Required rate of return is 19%

Answered: Common stock value: Constant growth…

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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ABC plc has paid the following dividends over the past seven years: Year Dividend per share 2014 £2.35 2013 £2.28 2012 £2.10 2011 £1.95 2010 £1.82 2009 £1.80 2008 2007 £1.73 £1.61 i) Based on the information provided above, apply Gordon’s growth model to compute the dividend growth rate. explain how to find growth rate by showing formula which will used. ii) If you can earn 13% percent on similar-risk investments, what is the most you would be willing to pay per share?
Cost of Equity: Dividend Growth Summerdahl Resort's common stock is currently trading at $26 a share. The stock is expected to pay a dividend of $1.25 a share at the end of the year (D1 = $1.25), and the dividend is expected to grow at a constant rate of 7% a year. What is the cost of common equity? Round your answer to two decimal places. %
Subject: accounting Estimating the Market’s Expected Growth Rate in Dividends Mattel, Inc. was trading at a price of $31.24 per common share at December 31, 2015. Using the Gordon growth model, estimate the market’s expected growth in dividends that is required to yield the $31.24 price per common share. Assume that the current dividend per share is $1.52 and is expected to grow thereafter, and that the cost of equity capital is 8.0%. (Hint: Use the equation for the dividend discount model with increasing perpetuity, at the top of page 12-20.) Round answer to one decimal place (ex: 0.0235 = 2.4%). Note: Assume current dividend per share is the dividend amount when the constant growth period begins. Answer%
Two growth model Determine the intrinsic value of an equity share, given the following data: Last dividend (Do) - Rs 2.00 Growth rate for the next five years - 15 percent Growth rate beyond 5 years - 10 percent Assume a required rate of return
devu
According to the dividend growth model, what should the stock price be today
Provide the Correct answer of this Question
Common stock value: Constant growth Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019, Seagate paid the following per-share dividends: Year Dividend per share 2019 2018 2017 2016 2015 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 21% required rate of return to find the value of Seagate's stock immediately after it paid its 2019 dividend of $2.49. $2.49 2.26 1.87 1.23 1.49 The value of Seagate's stock is $. (Round to the nearest cent.) C
Year beginning of year price Dividend paid 2015 125 2 2016 141 2 2017 120 2 2018 125 2 An investor buys six shares of this stock at the beginning of 2015, buys another beginning of 2016 sells one share at the beginning o 2017 sells all remaining share on 2018What are the arithmetic and geometric average weighted rate of return for the investor? What is the dollar-weighted rate of return?
New York Stock Exchange Composite Transactions Quotations as of 5 p.m. EST Nov. 13, 2022 YTD % CHG STOCK SYM YLD P/E LAST NET CHG 4.6 DowChem DOW 1.7 21.43 36.87 0.1 QUESTION #1. How much of dividends were paid out most recently? What is the dividend payout ratio for DOW? QUESTION #2. If you assume DOW will grow at a constant rate of 11% annually and require a rate of return of 13%, how much are you willing to pay the most for DOW stock? QUESTION #3. What was the beginning year price for DOW stock? Answer: approximately Do not round your interim calculations

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