**Question:**Smith Energy Corporation has a dividend yield of 5%, and its stock closed at $100 yesterday. This implies a QUARTERLY dividend of:- $1.25- $2.50- $3.75- $5.00**Explanation:**To find the quarterly dividend, use the formula:\[ \text{Annual Dividend} = \text{Dividend Yield} \times \text{Stock Price} \]Here, the annual dividend is $ 5\% \times 100 = 5 $.Since this is the annual dividend, the quarterly dividend is:\[ \frac{5}{4} = 1.25 \]Thus, the correct answer is $1.25.

The quarterly dividend can be calculated by computing the annual dividend from dividend yield.…

Answered: Smith Energy Corporation has a dividend…

Smith Energy Corporation has a dividend yield of 5%, and it's stock closed at $100 yesterday. This implies a QUARTERLY dividend of: O $1.25 O $2.50 O $3.75 O $5.00

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

See similar textbooks

Related questions

Q: Weston Corporation just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is…

A: Dividends for year 1, year 2, and year 3 grow at 10% and dividends for year 4, and year 5 grow at…

Q: Given the following information, what is the terminal (horizon) value of the company? The company…

A: Computation of dividend for year 1 through 6Snapshot of cell reference:Snapshot of output:

Q: Farmers Co. just paid a dividend of $0.85 on its ordinary shares. Due to the release of an exciting…

A: We need to use constant growth model to calculate stock price.The equation is Stock price =D1/(rs-g)…

Q: Shares of Hot Donuts common stock are currently selling for $32.35. The last annual dividend paid…

A: Accroding to Gordon's growth model,Po =wherePo= current market priceDo =dividend paidg= growth…

Q: Sparrow Products Industries is currently selling for $57.00. It just paid its annual dividend of…

A: The expected return of the stock is a measure of profitability from investment in the stock. The…

Q: The Glass Ceiling paid an annual dividend of $1.64 per share last year and just announced that…

A: Expected dividends denote the anticipated income that investors expect to derive from holding shares…

Q: Fire Hydrant Pet Supply just paid its first annual dividend of $0.75 a share. The firm plans to…

A: The cost of equity is the percentage cost of raising the fund through equity. It is the annual cost…

Q: Weston Corporation just paid a dividend of $2.5 a share (i.e., D0 = $2.5). The dividend is expected…

A: Under dividend growth model, valuation of common stock is done by assuming that dividends keep…

Q: You are considering an investment project with the cash flows of -300 (the initial cash flow), 700…

A: While calculating the MIRR under the combination approach, the project's negative cash flows or…

Q: The Belichick Hoodie Co. just paid a dividend of $3.96 per share on its stock. The dividends are…

A: We have provided the annual dividend paid per share, expected dividend growth rate and the current…

Q: Pacific Corporation just paid an annual dividend of $2.00 per share on its common stock. Dividends…

A: In this we need to use constant growth model for the prices of equity.

Q: ABC, Inc. just paid dividend of $1.14. The dividends are expected to grow at 3.15% each year…

A: Current market price of share represents that what is the value of share in the market is going on.…

Q: Weston Corporation just paid a dividend of $2.75 a share (i.e., D0 = $2.75). The dividend is…

A: To determine the expected dividends per share for each of the next five years, we need to apply the…

Q: A7X Corporation just paid a dividend of $1.40 per share. The dividends are expected to grow at 35…

A: Terminal value is computed by following formula:-Terminal value = where D = dividend paidg = growth…

Q: Weston Corporation just paid a dividend of $1.25 a share (i.e., D0 = $1.25). The dividend is…

A: The supernormal growth model is the model in which the value of a stock is measured through its…

Q: A company's last annual dividend was $2 a share. The company plans to pay $1.00 dividend per share…

A: Current value per share = Present value of future cash flows from the sharePresent value = Future…

Q: Slow 'n Steady Enterprises currently pays an annual dividend of $1.40 /share. Investors expect that…

A: The present value of stock with indefinite dividend payment with no growth is the dividend divided…

Q: A company's common stock currently sells for $22.50 per share, the expected dividend for the coming…

A: Cost of Retained earning= (Expected Dividend / Price ) + Growth = (1.92/ 22.5) + 6%= 14.53%

Q: Goode Inc.'s stock has a required rate of return of 12.00%, and it sells for $27.00 per share.…

A: This is based on the dividend discount model.As per the dividend discount model the value of a stock…

Q: Allstate Corp (ALL) recently paid a dividend of $5.51. The required rate of return is 6.97%. Other…

A: Current price of stock is the price which can be paid for purchase of the stock. It is also called…

Q: Zeta Company has paid the following dividends during the past four years of: Year DPS 2000 $2.3 2001…

A: Dividend in 2000 = 2.3 Dividend in 2001 = 2.645 Dividend in 2002 = 3.04 Dividend in 2003 = 3.50…

Q: Weston Corporation just paid a dividend of $2.5 a share (i.e., D0 = $2.5). The dividend is expected…

A: The question is related to Dividend Growth model. D0 = $2.5 D1 = D0 × (1 + g) and so on D0 = Just…

Q: Rho Ltd. has just paid a dividend of $0.25 on its stock. They expect dividends to grow at a rate of…

A: Dividend = $0.25 The growth rate for first two years = 6% Growth rate thereafter = 3% Required rate…

Q: ellner Motor Co.'s stock has a required rate of return of 11.50% and it sells for $48.00 per share.…

A: The given problem can be solved using constant growth dividend model.

Q: Ametek Co's last annual dividend was $2.50 per share. its common stock is selling for $36.00 per…

A: The term dividend refers to the part of net income of the company that the management decides to…

Q: $48.29

A: Given :-Current year dividend paid (D0) = $2.37First year Growth= 25%Now First year growth in…

Q: Company DIMOND just paid annual dividend of $5 today. The dividend is expected to grow at 3% for the…

A: Years Dividends 0 5 1 5+5*3%=5.150 2 5.150+5.150*3%=5.305 3 5.305+5.305*3%=5.464 4…

Q: Weston Corporation just paid a dividend of $3.75 a share (i.e., Do = $3.75). The dividend is…

A: Compute the dividend at the end of year 1, using the equation as shown below: Dividend=Just paid…

Q: Lala Ltd's stock currently sells for $5 per share. The company just paid an annual dividend of…

A: Current price (P0) = $5 D0 = $0.50 Growth rate (g) = 6% r = Expected return

Q: World-Tour Company has just now paid a dividend of $3.73 per share (Divo); its dividends are…

A: Stock price:A firm's stock price is a dynamic, ever-changing valuation that reflects the value that…

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: eston Corporation just paid a dividend of $3.75 a share (i.e., Do = $3.75). The dividend is expected…

A: Given information : Current dividend $ 3.75 Growth rate for 3 years 12% Growth rate…

Q: A7X Corporation just paid a dividend of $1.35 per share. The dividends are expected to grow at 35…

A: Current Dividend = d0 = $1.35Growth rate for next 8 years = g8 = 35%Growth Rate after 8 Years = g =…

Q: Blossom Corp. paid a dividend of $2.00 yesterday. The company’s dividend is expected to grow at a…

A: As per dividend discount model, P0 = D1 /(ke -g) Where, P0 = market price D1 =D0*(1+g) i.e.…

Q: 4. Grace Manufacturing paid a dividend yesterday of $5 per share (D0 = $5). The dividend is expected…

A: This approach can be used by investors to find the cost of equity financing. If an investor wants to…

Q: Von Bora Corporation (VBC) is expected to pay a $3.50 dividend at the end of this year. If you…

A: Dividend discount model:A technique for valuing a company's shares by projecting the current value…

Q: eta Company has paid the following dividends during the past four years of: Year DPS 2000 $2.3 2001…

A: We have to find the growth rate and then have to calculate the expected price for the Year end 2003.

Q: Sandhill Tire Co. just paid an annual dividend of $1.20 on its common shares. If Sandhill is…

A: Under dividend growth model, valuation of common stock is done by assuming that dividends keep…

Q: Microsoft Corp. just paid a dividend of $2.49 per share. The company said that it will increase the…

A: Current Dividend = d0 = $2.49Growth rate for year 1 = g1 = 25%Growth rate for year 2 = g2 =…

Q: anther Inc common stock is selling for $58.77 per share. The company pays a constant annual ividend…

A: Solution: Dividend is the amount of profits that is paid by the company to its shareholders. In…

Q: Gamma Corporation just paid a dividend of $3.00 per share on its common stock. Dividends are…

A: Value of the share is the sum of the present value of all the dividends.

Q: Weston Corporation just paid a dividend of $3.75 a share (i.e., Do = $3.75). The dividend is…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Pi, Inc. just payed a $2.35 per share dividend yesterday (that is D0). The dividend is expected to…

A: Solution:- Dividend Discount Model (DDM) is the model which derives a formula for current value of…

Q: L. Sanders Manufacturing paid a dividend last year of $5 per share. The dividend is expected to grow…

A: The dividend discount model (DDM), a mathematical technique for predicting the price of a company's…

Q: Pinkman Motors paid a dividend of $ 3.75 last year. If J Pinkmans return on equity is 24% and its…

A: Value of common stock can be calculated by using dividend growth model. This model consider dividend…

Q: Easttown Productions just paid an annual dividend of $7.85 per share. Future dividends are expected…

A: Dividend discount model is one of the method used for calculating stock price. It uses next year…

Q: Weston Corporation just paid a dividend of $2.75 a share (i.e., D0 = $2.75). The dividend is…

A: Given the following: Current dividend, D0 = $2.75 Growth rate for 3 years, gs = 9% Growth rate…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Weston Corporation just paid a dividend of $3.5 a share (l.e., Do = $3.5). The dividend is expected to grow 12% a year for the next 3 years and then at 3% a year thereafter. What is the expected dividend per share for each of the next 5 years? Do not round Intermediate calculations. Round your answers to the nearest cent. D1 $ D₂ = $ D3=$ D4=$ Ds = $
Weston Corporation just paid a dividend of $2.5 a share (i.e., Do = $2.5). The dividend is expected to grow 12% a year for the next 3 years and then at 4% a year thereafter. What is the expected dividend per share for each of the next 5 years? Do not round intermediate calculations. Round your answers to the nearest cent. D₁ = $ D₂ = $ D3 = $ D4 = $ D5 = $
ABC Inc has an outstanding preferred share. The preferred share just paid a dividend of $0.99. Dividends are paid quarterly. The price of stock today is $52.18. What is the effective annual rate of return?
Radon Homes' current EPS is $6.50. It was $4.42 5 years ago. The company pays out 40% of its earnings as dividends, and the stock sells or $36. a. Calculate the historical growth rate in earnings. (Hint: This is a 5 - yeargrowth period.)b. Calculate the next expected dividend per share, DI . (Hint: DO = o.4($6.50)= $2.60) Assume that the past growth rate will continue.c. What is Radon's cost of equity, rs ?
Radon Homesí current EPS is $6.30. It was $4.77 5 years ago. The company pays out 50% of its earnings as dividends, and the stock sells for $30. Calculate the historical growth rate in earnings. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the next expected dividend per share, D1. (Hint: D0 = 0:50 ($6:30) = $3:15.) Assume that the past growth rate will continue. Do not round intermediate calculations. Round your answer to the nearest cent. What is Radonís cost of equity, rs? Do not round intermediate calculations. Round your answer to two decimal places.
Monsters inc recently paid its annual dividend of $2.47 and reported an ROE of 6%. The firm pays out 50% of earnings as dividends. Based on your analysis, you estimate that the stock has a required return of 7%. What is the intrinsic value of this stock?
The last dividend paid by National Company was P2.00. National Company’s growth rate is expected to be a constant 5 percent for 2 years, after which dividends are expected to grow at a rate of 10 percent forever. National Company’s required rate of return on equity (rs) is 12 percent. What is the current price of National Company’s common stock? Answer Format: 111.11
Dipstick Auto Repairs is selling shares for $42.00 per share and pays a dividend. The projected growth rate for the company is 2.50%. Assuming the stocks required rate of return is 5.0%. What was the last dividend, Do? (Round to two decimals) $1.06 $1.02 $2.08 O $1.75 O $0.85
The last dividend paid by National Company was P2.00. National Company’s growth rate is expected to be a constant 5 percent for 2 years, after which dividends are expected to grow at a rate of 10 percent forever. National Company’s required rate of return on equity (rs) is 12 percent. What is the current price of National Company’s common stock? Format: 111.11
The common stock of ABC Corp is selling for $65 per share. The company pays a constant annual dividend and has a total return of 10.15 percent. What is the amount of the dividend?
Allstate Corp (ALL) recently paid a dividend of $5.51. The required rate of return is 6.97%. Other things held constant, what would the stock’s price be if the growth rate was 2.75%? A. $104.57 B. $134.16 C. $149.88 D. $179.85
Casco common stock sells for $58.49 a share and pays an annual dividend that increases by 1.3 percent annually. The market rate of return on this stock is 12.6 percent. What is the amount of the last dividend paid? $11.60 O $10.99 $9.98 $10.64 $9.52

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS