Question
1A)What is the expected annual capital gain for Orange Corp stock, based on the Dividend Growth Model? The company plans to pay an annual dividend
1A)What is the expected annual capital gain for Orange Corp stock, based on the Dividend Growth Model? The company plans to pay an annual dividend of of $9.27 per share in one year. The expected annual growth rate of the dividend is 14.31%, and the required rate of return for the stock is 17.48%. Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34).
1B)What is the estimated current price of a share of ABC Company stock based on the Dividend Growth Model? The annual required rate of return is 11.1%. ABC just paid their annual dividend of $2.67 a share and the expected growth rate of the dividend is 6% per year. Answer to the nearest penny.
1C) Starkiller Base Inc. expects to have a changing dividend policy over the next few years starting with the dividend that they just paid of $9.11. In the following year their dividend will grow by 16.7% and in the year after by 20.1%. Following that they expect their dividends to continue growing at a constant rate of 5.2% forever. If the required rate of return for Starkiller Base is 11.5% per year, what is the price today of their shares? Answer to the nearest penny.
1D) A stock just paid an annual dividend of $3.05 per share. The expected growth rate of the dividend is 2.91%. The required rate of return for the stock is 8.36% per annum. Based on the Dividend Growth Model, what is the expected dividend yield for the stock for the coming year? Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34).
ANSWER
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