he newspaper reported last week that Tisch Enterprises earned $34.17 million this year. The report also stated that the firm’s return on equity is 18 percent. The firm retains 75 percent of its earnings. What is the firm's earnings growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Earnings growth rate % What will next year's earnings be? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Next year’s earnings $ Synovec Corp. is experiencing rapid growth. Dividends are expected to grow at 28 percent per year during the next three years, 18 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 10 percent, and the stock currently sells for $98 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Projected dividend $ Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $9.15, but management expects to reduce the payout by 5 percent per year indefinitely. If you require a return of 15 percent on this stock, what will you pay for a share today? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Current share price $ Four years ago, Bling Diamond, Inc., paid a dividend of $2.15 per share. The firm paid a dividend of $2.57 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the last four years. Thereafter, dividends will grow at 4 percent per year. What will the firm’s cash dividend be in seven years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Cash dividend $
Dividend Valuation
Dividend refers to a reward or cash that a company gives to its shareholders out of the profits. Dividends can be issued in various forms such as cash payment, stocks, or in any other form as per the company norms. It is usually a part of the profit that the company shares with its shareholders.
Dividend Discount Model
Dividend payments are generally paid to investors or shareholders of a company when the company earns profit for the year, thus representing growth. The dividend discount model is an important method used to forecast the price of a company’s stock. It is based on the computation methodology that the present value of all its future dividends is equivalent to the value of the company.
Capital Gains Yield
It may be referred to as the earnings generated on an investment over a particular period of time. It is generally expressed as a percentage and includes some dividends or interest earned by holding a particular security. Cases, where it is higher normally, indicate the higher income and lower risk. It is mostly computed on an annual basis and is different from the total return on investment. In case it becomes too high, indicates that either the stock prices are going down or the company is paying higher dividends.
Stock Valuation
In simple words, stock valuation is a tool to calculate the current price, or value, of a company. It is used to not only calculate the value of the company but help an investor decide if they want to buy, sell or hold a company's stocks.
he newspaper reported last week that Tisch Enterprises earned $34.17 million this year. The report also stated that the firm’s
What is the firm's earnings growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Earnings growth rate %
What will next year's earnings be? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
Next year’s earnings $
Synovec Corp. is experiencing rapid growth. Dividends are expected to grow at 28 percent per year during the next three years, 18 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 10 percent, and the stock currently sells for $98 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Projected dividend $
Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $9.15, but management expects to reduce the payout by 5 percent per year indefinitely. If you require a return of 15 percent on this stock, what will you pay for a share today? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Current share price $
Four years ago, Bling Diamond, Inc., paid a dividend of $2.15 per share. The firm paid a dividend of $2.57 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the last four years. Thereafter, dividends will grow at 4 percent per year.
What will the firm’s cash dividend be in seven years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Cash dividend $
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