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1. 2. 3. 4. Thank you. Apocalyptica Corporation is expected to pay the following dividends over the next four years: $5.90, $16.90, $21.90, and $3.70.
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Apocalyptica Corporation is expected to pay the following dividends over the next four years: $5.90, $16.90, $21.90, and $3.70. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends, forever. If the required return on the stock is 10 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 7.9 percent thereafter. If the required return is 16 percent and the company just paid a dividend of $3.70, what is the current share price? (Hint: Calculate the first four dividends.) (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price Gontier Corporation stock currently sells for $64.68 per share. The market requires a return of 12 percent on the firm's stock. If the company maintains a constant 4.5 percent growth rate in dividends, what was the most recent dividend per share paid on the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Dividend per share $ You've collected the following information from your favorite financial website. 52-Week Price Hi Lo 77.40 10.43 55.81 33.42 131.04 70.05 50.24 13.95 35.00 20.74 Stock (Cur div) Palm Coal .36 Lake Lead Grp 1.54 SIR 2.55 DR Dime.80 Candy Galore .32 Div PE close Yld & Ratio Price 2.6 6 13.90 3.8 10 40.43 2.9 10 89.08 6 15.43 28 ?? Net chg - 24 -.01 3.07 -. 26 .18 According to your research, the growth rate in dividends for SIR for the next five years is expected to be 21 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.75 percent indefinitely. Assume investors require a return of 14 percent on SIR stock. According to the dividend growth model, what should the stock price be today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current stock price $ Based on these assumptions, is the stock currently overvalued, undervalued, or correctly valued? (Click to select)Step by Step Solution
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