Hubbard Industines just paid a common I dividend, Do, of $1.40. It expects to grow at a constant rate of 2% per year. If investors require a 8%. return on equity, what is the current price of Hubbard's Common stock? per $ share Carlyste Corporation has perpetual preferred Stock outstanding that pays a constant amual dividend of $2.00 at the end of each year. If investors require on 9% return on the preferred stuck, what is the price of the firm's perpetual preferred stuck?

Q: King Waterbeds has an annual cash dividend policy that raises the dividend each year by 5​%. The…

A: Stock price can be calculated with the help of the Gordon growth model.   According to the Gordon…

Q: The stock of Alpha Tool sells for $55.20 per share. Its current dividend rate, D0, is $3 per share.…

A: Concept . According to Gordon's model ,  P =[ D (1+g)] ÷ (ke -g). Where , P = market price per share…

Q: Reiterpallasch Inc. has provided you the following data: the company expects to pay a dividend of…

A: WACC(Weighted Avg. Cost of Capital) is average of  cost involved in financing whole capital…

Q: King Waterbeds has an annual cash dividend policy that nost recent dividend, Divo, was $0.45 per…

A: The Gordon Growth Model is used to calculate the intrinsic value of the stock. The model is used to…

Q: XYZ stock is currently selling for $73.4 per share. The company just paid its first annual dividend…

A: According to the information provided, current price of the stock is $73.40. Recent annual dividend…

Q: Hubbard Industries just paid a common dividend, D0, of $1.30. It expects to grow at a constant rate…

A: The dividend discount model is used as a means to determine the value of a share based on the sum of…

Q: DDY Ltd currently does not pay a dividend to its shareholders but equity analysts expect that the…

A: Share price refers to the amount which is used for trading the shares between the buyers and sellers…

Q: Quinoa Farms just paid a dividend of $3.50 on its stock. The growth rate in dividends is expected to…

A: Variables in the question:D0=$3.50g= 5% per year (indefinitely)Required return:For the first 3…

Q: Sea Side, Incorporated, just paid a dividend of $2.00 per share on its stock. The growth rate in…

A: Current Dividend = $2Three years discount rate = 14%Next three years discount rate = 9%after that =…

Q: CEPS Group just paid an annual dividend of OMR 2.45 a share. The firm plans to increase the annual…

A: Dividend paid just now (D0) = OMR 2.45 Dividend in Year 1 (D1) = OMR 2.45*(1+4%) = OMR 2.548…

Q: What is an estimate of Growth Company's cost of equity? Growth Company also has preferred stock…

A: As per the Bartleby Q&A guidelines, when multiple sub-parts of the question are asked then an…

Q: What is the estimated price of the stock?

A: Price of the stock means it is the  market value of the stock at which investors will buy such…

Q: Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect this…

A: Dividend for Year 1 = d1 = $0.69Growth Rate for next 3 years = g3 = 11.9%Growth Rate after year 4 =…

Q: ZippleCrunch Corp. will pay a dividend of $2.34 per share at the end of next year (end of year 1)…

A: We will first calculate the dividend rate thereafter we will use that dividend to calculate the…

Q: Quinoa Farms just paid a dividend of $3.00 on its stock. The growth rate in dividends is expected to…

A: Variables in the question:D0=$3g=4% per year (indefinitely)Required return:For the first 3…

Q: Hubbard Industries just paid a common dividend, D0, of $1.60. It expects to grow at a constant rate…

A: Share price: Share price is the current market price of the share. It is the price of the share at…

Q: The stock of Alpha Tool sells for $81.20 per share. Its current dividend rate, D0, is $3 per share.…

A: Stock valuation  The dividend discount model is a method of valuing a stock by discounting expected…

Q: CEPS Group just paid an annual dividend of OMR 1.75 a share. The firm plans to increase the annual…

A: Therefore, the stock price is OMR 29.54.

Q: Oriole Wok Co. is expected to pay a dividend of $1.6 one year from today on its common shares. That…

A: Solution:Dividend Discount Model (DDM) is the equity model which calculates the current value of…

Q: PG&E Corporation just paid a dividend of $4.8 per share (Do). The dividend is expected to grow at 5%…

A: Present value of stock will be the sum of present value of all dividend and terminal value.Stock…

Q: CEPS Group just paid an annual dividend of OMR 3.55 a share. The firm plans to increase the annual…

A: Formulas:

Q: Blairsvile paid a dividend of 2.75 on its stock. The growth rate of this dividend is 6% per year…

A: Current market price of a stock is Present value of all the future cashflows

Q: New Corp. last paid a $1.50 per share annual dividend. The company is planning on paying $1.80,…

A: We will use the dividend discount model here.As per the dividend discount model the value of a share…

Q: Last year Artworks, Inc. paid a dividend of $1.10. You anticipate that the company’s growth rate is…

A: The objective of this question is to calculate the maximum price that an investor would be willing…

Q: CEPS Group just paid an annual dividend of OMR 5.25 a share. The firm plans to increase the annual…

A: The share price is the current market price of the share. It is the price of the share at any…

Q: Please show work   The stock of Matrix Computing sells for $65, and last year’s dividend was $2.53.…

A: The stock of Matrix Computing sells for $65, and last year’s dividend was $2.53. Security analysts…

Q: 13.00% rate of return on this equity investment. What is the maximum price you would be willing to…

A: The constant growth model is a stock valuation method used in finance to determine a stock's…

Q: TXS Manufacturing has an outstanding preferred stock issue with a par value of ​$66 per share. The…

A: Annual Dividend = Par Value of Preferred Stock x Rate of Dividend                             = $66…

Q: Kassidy's Kabob House has preferred stock outstanding that pays a dividend of $5 at the end of each…

A: Preferred Stock Dividend = $5Preferred Stock Price = $50 Calculation of Required Rate of Return per…

Q: Gotham Ltd has issued perpetual preference shares with a $1,000 par value. The bank pays a quarterly…

A: The current price of preferred share is the price of the share that is listed on the stock market.

Q: Oman Group just paid an annual dividend of OMR 2.45 a share. The firm plans to increase the annual…

A: Therefore, the price of the stock is OMR 34.27.

Q: Simon Brothers has perpetual preferred stock outstanding that sells for $68 a share and pays a…

A:

Q: Jarett & Sons's common stock currently trades at $34.00 a share. It is expected to pay an annual…

A: We need to use constant growth model to calculate cost of equity. The equation is rn  =D1P0(1-f)+g…

Q: Sky High Co. just paid a dividend of $4.9 per share on its stock (Do). The dividends are expected to…

A: Last paid dividend (D0) = $4.9Constant growth rate (g) = 5% or 0.05Required rate of return (r) =…

Q: Ren Sun Rising just paid a dividend of $2.43 per share.  The company said that it will increase the…

A: P0 = Stock price D1 = Dividend at year 1, i,e. $2.7945 ($2.43 * 1.15) D2 = Dividend at year 2, i,e.…

Q: Holtzman Clothiers's stock currently sells for $16.00 a share. It just paid a dividend of $2.25 a…

A: The board of directors of a firm determines the amount of dividend which are required to be…

Q: King Waterbeds has an annual cash dividend policy that raises the dividend each year by 6%. The most…

A: The intrinsic value of stock refers to the present value of future cash flows expected from the…

Q: What should be the dividend of this “cumulative preferred” compared to the 1% of the ordinary?

A: Cumulative preferred stock implies that if there is unpaid dividend of any year and the company…

Q: What is one share of this stock worth to you if you require a rate of return of 12 percent?

A: The constant growth model is a stock valuation method used in finance to determine a stock's…

Q: Carpenter, Inc. has perfected stock that pays a dividend of $2.25 at the end of each year. If your…

A: Solution:- Preferred stock are those shares which pay a fixed dividend per period, generally…

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.