Goulds Corp. pays a constant $8.15 dividend on Its stock. The company will maintain this dividend for the next 12 years and will thencease paying dividends forever. If the required return on this stock Is 11%, what is the current share price? (Do not round Intermediatecalculations. Round the final answer to 2 decimal places.)Current share price

The current share price would be present value of dividend received for the next 12 years.

Answered: Goulds Corp. pays a constant $8.15…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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JJ Industries will pay a regular dividend of $0.65 per share for each of the next four years. At the end of four years, the company will also pay out a liquidating dividend. If the discount rate is 8 percent, and the current share price is $71, what must the liquidating dividend be? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Lohn Corporation is expected to pay the following dividends over the next four years: $14, $10, $9, and $3.50. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 10 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
ABC Inc. will be in business for only the next 10 years and pays an annual dividend of $2.65 for those ten years? What is the present value of a share of stock for this company if we want a 7% return on the stock? O A. None of the above. B. $18.61 OC. $69.44 O D. $526.96
Corporation pays a constant $12 dividend on its stock. the company will maintain this dividend for the next 4 years and then it will cease paying dividends forever. If the required return on this stock is 14%, what is the current share price? Please don't skip and give answer
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None
XYZ Inc., has an odd dividend policy. The company has just paid a dividend of $11.00 per share and has announced that it will increase the dividend by $9.00 per share for each of the next four years, and then never pay another dividend. If you require a return of 16 percent on the company’s stock, how much will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
New Gadgets, Incorporated, currently pays no dividend but is expected to pay its first annual dividend of $4.90 per share exactly 7 years from today. After that, the dividends are expected to grow at 3.5 percent forever. If the required return is 11.3 percent, what is the price of the stock today?
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JJ Industries will pay a regular dividend of $3.10 per share for each of the next four years. At the end of four years, the company will also pay out a liquidating dividend. If the discount rate is 11 percent, and the current share price is $67, what must the liquidating dividend be? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Shirley and Sons pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $.30 a share for two years commencing two years from today. After that time, the company plans on paying a constant $1 a share dividend indefinitely. Given a required return of 14% p.a., what is the value of this stock?

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