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- Gamma Ltd is growing rapidly. Dividends are expected to grow at rates of 25%, 18%, and 12% over the next three years. After that, the company expects to grow at a constant rate of 6%. The share is currently trading at $20. The required rate of return for Gamma is 12%. What is the dividend for the current year?As an analyst, you have gathered the following information on a company you are tracking. The current annual dividend is $0.75. Dividends are expected to grow at a rate of 12% over the next 3 years, and then decline to a 4% over the next 6 years, and then remain at a long term equilibrium growth rate of 4% in perpetuity. The required return is 9%. Calculate the value of the companyA firm is expected to pay a dividend of $2.85 next year and $3.15 the following year. Financial analysts believe the stock will be at their price target of $110 in two years.Compute the value of this stock with a required return of 13.1 percen
- Wheat Inc. has just paid its annual dividend of $2.10. The company is expected to pay the same $2.10 dividend for years 1 and 2. After that dividends is expected to grow at an annual rate of 18% for the following 2 years, and at 12% for 3 years after that, then, starting in year 8 dividend is expected to grow at a constant rate of 5% indefinitely. The required rate of return on Wheat Inc. stock is 14%. a. What is the expected dividend in year 5? b. What is the expected dividend in year 7? c. What is the expected value for the stock in year 7? d. What is the current value of one share of Wheat Inc. stocks today? e. What is the expected price in year 15? Calculate the expected stock price today if the dividend is expected to cease after 15 years. (Year 15 will be the last divided)A company is expected to pay a dividend of $3.0 per share next year. Over the next three years, the dividends are expected to grow at 15%. Beyond that, the dividends are expected to grow at a constant rate of 4%. The required rate of return is 11%. What is the price of this stock today?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 Company
- The dividend per share next year of EMP Ltd is expected to be $1.20, and the required rate of return on the shares is 12% p.a. The dividends are expected to grow at a rate of 20% p.a. the following year, at 15% p.a. in the year after that, and at a constant rate of 8% p.a. for the foreseeable future after that. Based on the above information, the estimated price of EMP Ltd’s shares is closest to: Group of answer choices $31.80. $35.20. $37.10. $44.70.Your company has the following expected dividends over the next 6 years: $2.00, $2.40, $3.20. $3.60, $4.20, and $4.41. Note that starting in Year 5, dividends will begin to grow at a constant, long-run sustainable growth rate of 5 percent (D6 $4.20 x 1.05 $4.41, etc.). Further, the risk- free rate is 4.0 percent, the Risk Premium on the Market is 6.0 percent, and the company has a beta of 1.50. Calculate the current price of this stock at Year 0. Ⓒ$47.84 O $52.72 $43.75 O $37.29 O $40.27Consider a firm that just paid a dividend of $5.50 per share. The company expects growth in the coming 2 years to be 17%. After the second year, the firm expects dividends to grow at a constant rate of 3% per year. Assume the required rate of return is 10%
- Ewald Company is experiencing rapid growth. Earnings and dividends are expected to grow at a rate of 11% during the next 2 years, at 9% the following year, and at a constant rate of 6% during Year 4 and thereafter. Its last dividend was $2.15, and its required rate of return is 14%.A. Calculate the value of the stock today. B. Calculate the dividend and capital gains yields for Years 1, 2, and 3. What is the impact on the stock price if g falls to 4% or rises to 6%? *News Corp is expected to pay a dividend of $0.8 in one year. The dividend is expected to grow at 12% in the following 3 years and then at a constant rate of 4% per annum indefinitely. If the required rate of return is 12%, what is the price of the company's share today? Please illustrate your answer using a timeline.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?