Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer those 4 questions please 1- Burnett Corp. pays a constant $20 dividend on its stock. The company will maintain t dividend for the next

answer those 4 questions please

1- Burnett Corp. pays a constant $20 dividend on its stock. The company will maintain t dividend for the next 7 years and will then cease paying dividends forever. If the required return on this stock is 14 percent, what is the current share price?

2-Lohn Corporation is expected to pay the following dividends over the next four yea $11, $9, $5, and $1. Afterward, the company pledges to maintain a constant 7 perc growth rate in dividends forever. If the required return on the stock is 15 percent, what is the current share price?

3-Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $14 but management expects to reduce the payout by 8 percent per year indefinitely. If you require a return of 18 percent on this stock, what will you pay for a share today?

4-Mannix Corporation stock currently sells for $90 per share. The market requires a reti of 8 percent on the firm's stock. If the company maintains a constant 4 percent growth rate in dividends, what was 1 most recent dividend per share paid on the stock?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance

Authors: Ehsan Nikbakht, A A Groppelli

6th Edition

0764147595, 9780764147593

More Books

Students also viewed these Finance questions

Question

What is one of the skills required for independent learning?Explain

Answered: 1 week ago