Weston Corporation just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is
Question:
Weston Corporation just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow 8% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places.
Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.
Year | 1 | 2 | 3 | 4 | 5 |
FCF | -$22.94 | $37.4 | $43.1 | $51.3 | $56.4 |
The weighted average cost of capital is 9%, and the FCFs are expected to continue growing at a 4% rate after Year 5. The firm has $24 million of market-value debt, but it has no preferred stock or any other outstanding claims. There are 21 million shares outstanding. What is the value of the stock price today (Year 0)? Round your answer to the nearest cent. Do not round intermediate calculations.
Fundamentals Of Financial Management
ISBN: 9781337902571
Concise 10th Edition
Authors: Eugene F. Brigham, Joel F. Houston