Provide correct answer general Accounting question XYZ, Inc. is expected to pay a dividend of$1.33. The dividends are expected to grow at7.74% each year forever. The required rate ofreturn on the stock is 22.73%. What is today'sprice of the stock? Round your answer to twodecimal points.

Step 1: Define Types of Stock PriceStock price can be of two types: the fair price or the…

Answered: XYZ, Inc. is expected to pay a dividend…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 3P

See similar textbooks

Similar questions

Gen Lab is expected to pay out a dividend of $0.75 per share in one year. The expected stock price in one year is $42 per share and the required return on the stock (also known as the cost of equity or the equity cost of capital) is 12%. What is the value of the stock today? Round your answer to two decimal places. Your Answer:
Tresnan Brothers is expected to pay a $1.80 per share dividend at the end of the year (i.e., D1 = $1.80). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 16%. What is the stock's current value per share? Round your answer to two decimal places. $ Please make sure the answer is correct. I had many incorrect answers.
Tresnan Brothers is expected to pay a $2.9 per share dividend at the end of the year (i.e., D1 = $2.9). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, rs, is 16%. What is the stock's current value per share? Round your answer to two decimal places.
Trent Brothers is expected to pay a $3.80 per share dividend at the end of the year (i.e., D1 = $3.80). The dividend is expected to grow at a constant rate of 10% a year. The required rate of return on the stock, rs, is 19%. What is the stock's current value per share? Round your answer to the nearest cent.
A common stock will pay a cash dividend of $4.25 next year. After that, the dividends are expected to increase indefinitely at 4% per year. If the discount rate is 14%, what is the PV of the stream of dividend payments? Note: Round your answer to 2 decimal places. Present Value
Tresnan Brothers is expected to pay a $1.60 per share dividend at the end of the year (i.e., D1 = $1.60). The dividend is expected to grow at a constant rate of 10% a year. The required rate of return on the stock, rs, is 17%. What is the stock's current value per share? Round your answer to the nearest cent.
Jefferson's recently paid an annual dividend of $5 per share. The dividend is expected to decrease by 2% each year. How much should you pay for this stock today if your required return is 10% (in $ dollars)? $______. give the answer with decimals
XYZ, Inc. is expected to pay a dividend of $5 which is expected to grow at a constant annual rate of 5%. What is the expected rate of return on this stock if it currently sells at $43 per share? Show your answer in percent to one decimal.
ABC, Inc.'s stock is currently selling for $66.17. The dividends are expected to grow at 1.16% each year forever. If the required rate of return on the stock is 13.98%, what is the current period's dividend? That is, solve for D0.
A common stock will pay a cash dividend of $4 next year. After that, the dividends are expected to increase indefinitely at 2% per year. If the discount rate is 13%, what is the PV of the stream of dividend payments? (Round your answer to 2 decimal places.)
The next dividend payment by DEF, Inc., will be $1.61 per share. The dividends are anticipated to maintain a growth rate of 6.14 percent forever. If the stock currently sells for $28.45 per share, what is the required return (in percent)? Answer to at least three decimals.
2) see picture

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

XYZ, Inc. is expected to pay a dividend of $1.33. The dividends are expected to grow at 7.74% each year forever. The required rate of return on the stock is 22.73%. What is today's price of the stock? Round your answer to two decimal points.