Select the bestQuestion 24Reddick Enterprises' stock currently sells for $35.50 per share. The dividend is projected to increase at a constant rate of 5.50%per year. The required rate of return on the stock (I/Yr) is 9.00%. What is the stock's expected dividend in 3 years (Div3)?O 146O 224O 1.76O 2.00O 1.24

The Dividend discount model refers to a model that is based on the theory that the current price of…

Answered: Select the best Question 24 Reddick…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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stion24 ion24 Reddick Enterprises' stock currently sells for $35.50 per share. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock (I/Yr) is 9.00%. What is the stock's expected dividend in 3 years (Div3)? O 1.46 O 224 O 1.76 O 2.00 O 1.24
24. Zero-Sum Enterprise has just now paid a dividend of S8.00 per share (DO); the dividends are expected to grow at a constant rate of 5% per year forever. If the required rate of return on the stock is 18%, what is the current value of stock, after paying the dividend? A. $61.54 B. $64.62 C. S44.44 D. $46.67
QUESTION 1 Stock in CDB Industries has a beta of 1.12. The market risk premium is 7.2 fercent, and T-bills are currently yielding 4.2 percent. CDB's most recent dividend was $3.60 per share, and dividends are expected to grow at a 5.2 percent annual rate indefinitely. Required: If the stock sells for $58 per share, what is your best estimate of CDB's cost of equity? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) cost of equity: %
QUESTION 4 What is the expected annual return for a stock that is priced at $64.78, is expected to pay a dividend of $2.00 every quarter forever, and is expected to pay its next dividend in 3 months? O 12.35% (plus or minus 2 bps) O3.09% (plus or minus 2 bps) O 12.93% (plus or minus 2 bps) O6.17% (plus or minus 2 bps) O the answer cannot be obtained based on the given information
Q. 17 Lumen Inc. is expected to have an earnings per share next year equal to $4.00 and is forecast to have a dividend payout ratio of 75% in perpetuity. The company is also forecast to have an ROE of 12%. The current market price per share is $10 which also happens to equal the current intrinsic value of equity per share, i.e., the market price is efficient. What must be the discount rate in order for the intrinsic equity value per share to equal to market price per share? Options - 43% 13% 33% 23%
Question 3 The firm is expected to pay a dividend of $0.50 forever starting from the fourth year. If the required return is 10 percent, what is this stock worth today? 4.13 3.76 O 3.42
Required information The following data is provided for a PPP project. To the Government $1.8 milion naw and $200,000 every 3 years To the People Benefits $90,000 per year beginning now Cost $25,000 per year Savings $115,000 per year Disbenefits Calculate the conventional benefit/cost ratios using an interest rate of 7% per year and an infinite project period. The conventional B/C ratio is
Question 13 Burke Tires just paid a dividend of Do-$1.3. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 4% 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?
utv.1 A stock has a share price of $51.00 and an expected annual return of 10.54 percent. The stock is expected to pay a constant dividend forever with the next annual dividend expected in 1 year. What is the present value of the annual dividend that is expected in 4 years from today?(Round the value to 100th decimal)
1. Stock Values Fowler, Inc., just paid a dividend of $2.55 per share on its LO 1 stock. The dividends are expected to grow at a constant rate of 3.9 petcon per year, indefinitely. If investors require a return of 10.4 percent on this stock, what is the current price? What will the price be in 3 years? m 15 years? LO 1 2. Stock Values The next dividend navment by Hoffman Inc will be $2.65
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Problem 9.27 Staggert Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, the company expects its dividend growth rate to be constant at 8.5 percent. If the required rate of return is 17.0 percent, what is the current value of the stock? (Round intermediate calculations and final answer to 2 decimal places, e.g. 16.25.) Current value Click if you would like to Show Work for this question: Open Show Work

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