You own 600 shares of stock in Avondale Corporation. The company plans to pay a dividend of $2.48 per share in one year and a final liquidating dividend of $20.10 per share two years from now. The required return on Avondale stock is 16.3 percent. What will your dividend income be this year if you use homemade dividends to create two equal annual dividend payments?

Q: You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year.…

A: Data given: Purchase price (P0)= $50 per share Dividend per share per year = $2 i.e., D1=$2,  D2= $2…

Q: Long Life Floors is expected to pay an annual dividend of $6 a share and plans on increasing future…

A: Any investor is willing to pay the present value of all future payments discounted at his required…

Q: Star Light & Power increases its dividend 2.6 percent per year every year. This utility is valued…

A: The dividend discount model (DDM) is a quantitative method used for predicting the worth of a…

Q: Maxwell Inc. announced today that it will begin paying annual dividends. The first dividend will be…

A: The price of the stock can be calculated by discounting all its dividend at the given discount rate.

Q: The initial cost of an investment is $65,000 and the discount rate (cost of capital) is 12%. The…

A: Initial Cost = i = $65,000Discount Rate = r = 12%Cash Flow per Year = c = $16,000Time = t = 8 Years

Q: Long Life Floors is expected to pay an annual dividend of $8 a share and plans on increasing future…

A: Value of stock is Sum of all dividend paid discounted at cost of capital

Q: Beta Corporation is expected to pay the following dividends per share over the next two years,…

A: Most amount willing to pay is present value of all future cash flows discounted at required rate of…

Q: Gee-Gee's is going to pay an annual dividend of $2.05 a share next year. This year, the company paid…

A: Dividend For year 1 = d1 = $2.05Dividend For year 0 = d0 = $2Discount Rate = r = 10.3%

Q: You purchase 1,000 shares of WMT (Walmart) for $143 per share. A year later, you sell the stock for…

A: ParticularsValuesNumber of shares purchased1000Purchase Price per share$143Selling price per…

Q: Briel kitchenware paid an annual dividend of $1.60 per share last month. Today, the company…

A: The dividend Growth Model is used for the valuation of a stock’s intrinsic value or fair value,…

Q: Peter plans to invest in the ordinary share of Queens Ltd which is trading at $12.00 currently. From…

A: Intrinsic value: Intrinsic value denotes to an investor's view of the intrinsic worth of an asset,…

Q: Three Corners Markets paid an annual dividend of $1.16 a share last month. Today, the company…

A: Stock price refers to the price at which the shares can be sold in the market between the buyers and…

Q: You can purchase stock from XYZ Corp at a price of $50/share.  You purchase 100 shares today, and…

A: Here, To Find: Value of shares after 5 years =?

Q: Compute the total and annual returns on the described investment.   Six years after buying 200…

A: Given, Number of shares bought 200 Price per share is $50 Sale value $15000

Q: You purchased 200 shares of XYZ common stock for $134 a share four years ago. The stock pays…

A: In this question we will be calculating the 6 year effective annual return on purchasing 200 shares…

Q: You purchase Griffin ltd at $46.00 per share intend to hold it for a year and hope to sell, it at…

A: The rate of return that an investor is expected to earn from the investment is term as the expected…

Q: You are offered a chance to purchase shares in a new company which sells franchises for MamaC Pizza.…

A: Intrinsic value of share = Annual dividend/required return

Q: Poulter Corporation will pay a dividend of $4.30 per share next year. The company pledges to…

A: With required rate of return (r), next year dividend (D) and the fixed indefinite growth rate (g),…

Q: Blossom Manufacturing Company has been growing at a rate of 6 percent for the past two years, and…

A: Data given:: Growth rate (g)= 6% D0= $1.50 Expected dividend (D1) = $1.50 * (1+6%) Required rate of…

Q: You Invest $3000 by buying 100 shares of Driss Inc at a price of $30 per share. One year from now,…

A: IRR is the break-even rate of return at which the present value of cash flow is equal to the initial…

Q: You are considering acquiring a common share of Sahali Shopping Center Corporation that you would…

A: To calculate the maximum price of the stock we will use the below formulaMaximum stock price =…

Q: John have just purchased a share of Amber Inc. preferred stock. Amber will pay a $10 annual…

A: Solution:- Preferred stock is the stock which has preference over common shares at time of payment…

Q: Hudson Corporation will pay a dividend of $ 4.00 per share next year. The company pledges to…

A: The dividend discount model will be used here. As per the dividend discount model the worth of a…

Q: Over the next three years, Distant Groves will pay annual dividends of $1.65, $.172, and $1.80 a…

A: Dividend Discount Model is a Model for valuation of a stock which discount the the annual dividends…

Q: Hudson Corporation will pay a dividend of $2 pledges to increase its dividend by 6.00 percent per…

A: Dividend Discounting Model (DDM) states that the present value of a stock is dividend in the year 1…

Q: App Holdings is expected to pay dividends of $1.50 every six months for the next three years. If the…

A: Semiannual dividend for three years (D) = $1.50 Semiannual cost of capital (r) = 0.09 (i.e. 0.18 /…

Q: you are considering the purchase of zee company stock. you anticipate that the company will pay…

A: Present value (PV) is a financial concept used to determine the current worth of a sum of money that…

Q: Company X is paying an annual dividend of $4.00 and has decided to pay the same amount forever.…

A: Present Value can be calculated using PV function in excelPV (rate, nper, pmt, [Fv], [type])Rate The…

Q: You own 2,200 shares of stock in Avondale Corporation. You will receive a dividend of $1.50 per…

A: Total dividend in year 1= Number of shares * Dividend per share.2,200∗$1.50=$3,300Dividend…

Q: Company A is expected to pay dividends of $2.00 every six months for the next four years. If the…

A: Variables in the question:PV=$22.60PMT=$2.00 (every six months)N=4 yearsnper=4*2=8Rate=20%/2 =10%

Q: Michael’s, Inc. just paid $1.80 to their shareholders as the annual dividend. Simultaneously, the…

A: Just paid dividend (D0) is $1.80. The growth rate (g) is 5%. The rate of return (r) is 4%

Q: You own $107,000 worth of Smart Money stock. One year from now, you will receive a dividend of $2.95…

A: A share price refers to the stock price of a particular company. Investors invest in a particular…

Q: You are evaluating the purchase of Bell, Inc. common stock that just paid a dividend of $4.60. You…

A: Dividend paid( D0)= $4.60Growth rate= 10%Required return= 13%Estimated stock price at the end of 4…