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- Connolly Co.'s expected year-end dividend is D₁ = $2.75, its required return is rs = 11.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future. What is Connolly's expected stock price in 7 years, i.e., what is P7? Select the correct answer. a. $64.97 b. $63.05 O c. $63.53 d. $64.01 O e. $64.49Sorenson Corp.'s expected year-end dividend is D1 = $1.50, its required return is rs = 14.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future. What is Sorenson's expected stock price in 6 years, i.e., what is P̃6? Do not round intermediate calculations. a. $35.46 b. $54.87 c. $27.00 d. $39.67 e. $36.73Corenson Corp.'s expected year-end dividend is D1 = $4.00, its required return is rs = 11.00%, its dividend yield is 6.00%, and its growth rate is expected to b onstant in the future. What is Sorenson's expected stock price in 7 years, i.e., what is P-? Do not round intermediate calculations. O a. $87.24 O b. $76.92 O c. $93.81 O d. $90.05 O e. $85.36
- The Evanec Company’s next expected dividend, D1, is $3.18; its growth rate is 6%; and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share.a. What is Evanec’s cost of retained earnings, rs?b. What is Evanec’s percentage flotation cost, F?c. What is Evanec’s cost of new common stock, re?Company R has paid most recent dividend as $2.55. The dividend will be paid by the company forever and the dividend will grow at 6.00% forever. The required rate of return is 10%. What will be the current stock price? a. $63.750 b. $67.575 c. $65.125 d. $67.255Suppose that a company's most recent dividends per share paid upon the last year's net income was $1.6 . The share price of the company is fairly valued in the market at $10 . The expected dividend growth rate is 2% in perpetuity. Given that the risk-free rate is 3% and market risk premium is 10%, what happens to the share prices when the whole market increases by 10%? a) increase by 15.32%b) increase by 15.00%c) increase by 11.79%d) increase by 21.89%e) other
- For Company ABC, if stock price P0 = $30; dividend paid at the end of period 1 D1 = $3.00; growth rate g = 5%; What’s the required rate of return for equity holder rs = ? If the flotation cost F = 10%; What’s the required rate of return for equity holder rs = ?The next dividend payment by Hoffman, Inc., will be $3.05 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. Assume the stock currently sells for $49.70 per share a. What is the dividend yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) b. What is the expected capital gains yie d? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % Dividend vield Capital gains yieldCompany has the following dividend stream. D1 = 1.81 D2 = 3.24 D3 = 4.64 D4 = 5.27 Dividend is expected to be constant after year 4, with a growth rate of 4%. The cost of equity is 10%. What is the stock price, P0 , today?
- 3D printing Corp paid a dividend yesterday of $1 per share. The dividend is expected to grow at 29.00% per year for 2 years and then the growth rate will slow to 2.90% per year forever. If the required rate of return is 7.40%, then what is the current stock price? (Pls use formulas) a. $34.11 b.$36.63 c. 27.62 d.$35.63 e. $33.36If the target payout ratio is 0.2 and the adjustment ratio is 0.4 Find the dividend if the EPS is Rs 6/- and the dividend per share for last year is Rs 1.40 a. 1.32 b. 1.96 c. 2.00 d. 3.965. The firm's expected year-end dividend is D1 = P 1.60, its required return is r, =11.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future. What is the firm's expected stock price in 7 years, i.e., what is P? a. P41.37 d. P43.44 с. Р 37.52 f. P43.56 b. Р39.40 e. P45.61 6. The firm just paid a dividend of Do =P 1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value? с. Р43.75 f. P 44.87 a. P41.59 d. P 46.87 b. Р42.65 e. P45.99