Based on the Gordon Constant Dividend Growth Model, and assuming dividends are made in one complete payment every 12 months, compute the current ex-dividend price of stock T (PO, T). Assume the following: If you were to buy the stock now, at price P, T, the first dividend receivable would be in exactly one year's time i.e., at t=1). Dividends paid in the current period (i.e., t=0) are $2.50 per share. The annualized required rate of return (Ke, T) demanded by stock holders of company Tis 12.50 per cent The year-on-year growth rate in T's dividends is 3.50 per cent. Suppose the year-on-year growth rate in dividends in company EFT is 3 percent. Note the following: In the past period (1.e., t-1) the dividend is $3.010 per share; and In the present period (1.e., t=0) the dividend is $3.100 per share. (*) The current (25 January 2021) ex-dividend share price of stock EFT is $53.216. In accordance with the Gordon Constant Dividend Growth Model, compute stock holders' annualized required rate of return (Kc, EFT) for stock EFT. Assume dividends are distributed in one complete payment per year. An investor purchasing stock EFT on 25 Jamuary 2021, at ex-dividend price P, EFT, thus receives its first dividend in 12 months' time t=1) and the second one in 24 months' time (t=2), and so on. Compute the dividend vield on stock EFT based on the current share price and dividends at t=1 (1.e., the dividend per share receivable 12 months from now). In relation to the information in part (a) above suppose that company EFT's net profit (1.e., profit after corporate tax) in period t=0 is $2,402.5 million. Accordingly, determine the company's dividend payout ratio at t=0 if the dividend per share paid to S's ordinary shareholders is $3.100. (*) Based on the Gordon Constant Dividend Growth Model, and assuming dividends are made in one complete payment every 12 months, compute the current ex-dividend price of stock T (PO, T). Assume the following: If you were to buy the stock now, at price P, T, the first dividend receivable would be in exactly one year's time i.e., at t=1). Dividends paid in the current period (i.e., t=0) are $2.50 per share. The annualized required rate of return (Ke, T) demanded by stock holders of company Tis 12.50 per cent The year-on-year growth rate in T's dividends is 3.50 per cent. Suppose the year-on-year growth rate in dividends in company EFT is 3 percent. Note the following: In the past period (1.e., t-1) the dividend is $3.010 per share; and In the present period (1.e., t=0) the dividend is $3.100 per share. (*) The current (25 January 2021) ex-dividend share price of stock EFT is $53.216. In accordance with the Gordon Constant Dividend Growth Model, compute stock holders' annualized required rate of return (Kc, EFT) for stock EFT. Assume dividends are distributed in one complete payment per year. An investor purchasing stock EFT on 25 Jamuary 2021, at ex-dividend price P, EFT, thus receives its first dividend in 12 months' time t=1) and the second one in 24 months' time (t=2), and so on. Compute the dividend vield on stock EFT based on the current share price and dividends at t=1 (1.e., the dividend per share receivable 12 months from now). In relation to the information in part (a) above suppose that company EFT's net profit (1.e., profit after corporate tax) in period t=0 is $2,402.5 million. Accordingly, determine the company's dividend payout ratio at t=0 if the dividend per share paid to S's ordinary shareholders is $3.100. (*)
