Yamana Gold Inc. (AUY) currently no pays dividend but its new management will pay a dividend at the end of Year 4. Year 4 earnings are expected to be $2.97, and AUY will maintain a payout ratio of 47%. With an assumption that AUY’s constant growth rate is 3.42%, and a required rate of return of 7.17%, the present value of AUY is closest to A. $30.24. B. $49.71. C. $70.92. D. $91.86.

Q: BLT Ltd last paid a dividend of $0.20 three years ago.  Today the company announced they will resume…

A:

Q: Holt Enterprises recently paid a dividend, D0, of $4.00. It expects to have nonconstant growth of…

A: HOLT ENTERPRISES   C D E F   Year Dividend PVIF Present value 6 0 4.00 15.00%   7 1 5.00…

Q: cently paid a dividend, D0, of $2.50. It expects to have nonconstant growth of 20% for 2 years…

A: Present value of dividends and present value of horizon value would give the value of stock today on…

Q: Prescott Pharmaceuticals will pay an annual dividend of $1.25 one year from now at t=1. Analysts…

A: The value of any assets will be the present value of cash flow that is expected from it. This is the…

Q: Please see image for question as this is a single, three part question.  A. ? B. ? C. ?

A: A model that helps to evaluate the value of the stock by discounting the dividend earned on the…

Q: Tinsley, Incorporated, wishes to maintain a growth rate of 12 percent per year and a debt-equity…

A: Return on equity = Profit margin / Total assets to sales * (1+Debt equity ratio)Retention ratio =…

Q: Soju Ltd is currently trading at $39, and recently paid an annual dividend of $4.5. If it is…

A: Last dividend (D0) = $4.5 Stock price (P0) = $39 ROE = 8% Retention ratio = 30% Growth rate (G) =…

Q: per year. If the required return on Computech is 17%, what is the value of the stock today? Do not…

A: Value of Stock: As per the dividend discount model, the price of the stock can be computed by…

Q: Market analysts expect the earnings per share of KLM Ltd to be $2.00 next year. The earnings per…

A: The conceptual formula used:

Q: Stetson corporation does not pay divedends because it is expanding rapidly and needs retain all…

A: Working note:

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: Dividend year 3(D3)=1 Growth rate Year 4&5 = 25%  Growth rate after Year 5=7% Required return =…

Q: Hutch Enterprises recently paid a dividend, D0, of $3.00. It expects to have nonconstant growth of…

A:

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: Today's share price can be figured out by using a method called the Dividend Discount Model (DDM).…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: The value of a share of common stock is equal to the present value of all future cash flows…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: Dividend for Year 3 = d3 = $0.50Growth Rate for Year 4 and 5 = g45 = 32%Growth Rate after year 5 = g…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: Given, D3=$0.75 Growth rate (year 4 & 5)=24% Growth rate (after year 5)=5%

Q: Sawchuck Consulting has been profitable for the last 5 years, but it has never paid a dividend.…

A: given, D3=$0.25 D4= $0.38 D5= $0.48 D6= $0.52 r = 11% g = 8%

Q: Holt Enterprises recently paid a dividend, D0, of $3.25. It expects to have nonconstant growth of…

A: The recent dividend is $3.25. The below formula can be used to calculate future dividend value:

Q: Return to question The stock of Nogro Corporation is currently selling for $16 per share Earnings…

A: Share price = $16Expected EPS = $4Payout ratio = 40%ROE = 25%

Q: Barton Industries expects next year's annual dividend, D1, to be $2.50 and it expects dividends to…

A: Cost of Retained Earnings: The cost of retained profits is the expense to a firm of funds that have…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: The price of share today will be calculated by using dividend  discount model. The perpetuity Value…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: Formulas:

Q: Holt Enterprises recently paid a dividend, D0, of $2.00. It expects to have nonconstant growth of…

A: Formulas: To find the horizon value is: P2 = D2(1+g)         r - g To find the value of the stock…

Q: what is the Present Value of Growth Opportunities (PVGO) if the company reinvests 25% of its…

A: Present Value of Growth Opportunities (PVGO) is a concept that gives analysts a different approach…

Q: Happy Time Inc. is expected to generate the following cash flows for the next year, as shown in the…

A: Debt is one of the form of loan taken by the business. Equity is also one of the source of financing…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: The proportion of net income that the company wishes to retain within itself to meet its long-term…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: A share price refers to the amount of money it will cost an individual to buy one share in a…

Q: Holt Enterprises recently paid a dividend, De, of $1.75. It expects to have nonconstant growth of…

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

Q: The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to be…

A:

Q: Atlas Honda’s last dividend, D0 , was Rs 0.50. Owing to COVID-19 company expects to experience no…

A: The price per share at the end of the second year will be the present value of the dividends after…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: The dividend after 3 years is $1.75. Future dividends can be calculated with the help of the below…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: The value of a stock is its intrinsic worth. Essentially what it's worth based on its future earning…

Q: Happy Time Inc. is expected to generate the following cash flows for the next year, as shown in the…

A: The expected return is the estimation of profit or loss that an investor determine from his…

Q: Emerald City Corporation (ECC) is expanding rapidly and currently needs to retain all of its…

A: The dividend discount model is used to find out the current price of the stock as it is considered…

Q: ey, Incorporated, wishes to maintain a growth rate of 17 percent per year and a debt-equity ratio of…

A: Some part of net income is paid as dividend to the shareholders and some part is retained by company…

Q: A firm currently pays no dividend but is expected to pay a dividend at the end of Year 6. Year 6…

A: It is given that,growth rate is 7%.Year 6 expected earning is $3.2.Payout ratio is 40%. So, dividend…

Q: "s required return is 19%. a. How far away is the horizon date? I. The terminal, or horizon, date is…

A: The valuation of stock is done on the basis of variable growth rate and constant growth rate and…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: According to Gordon growth model , P =[  Do (1+g) ] ÷ (ke -g) Where , P = Market price per share Do…