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Can someone help me solve part 3- part 6 please? Intro ABC Corp. has just paid a dividend of $0.29. ABC has an annual required
Can someone help me solve part 3- part 6 please?
Intro ABC Corp. has just paid a dividend of $0.29. ABC has an annual required return of 11.25%. 18 - Attempt 1/10 for 10 pts. Part 1 If dividends are annual and expected to be constant, what is the value of the stock? 2.57 Correct Using the no-growth dividend discount model: D P= r 0.29 0.1125 = 2.579 Attempt 2/10 for 10 pts. Part 2 What is ABC's dividend yield? 0.1125 Correct Dividend yield Annual dividend Stock price 0.29 2.579 0.1125 IB | Attempt 3/10 for 10 pts. Part 3 From now on, assume that the dividend of $0.29 was a quarterly dividend. What is the quarterly discount rate? 4+ decimals Submit 18 Attempt 1/10 for 10 pts. Part 4 What is the value if dividends are constant and quarterly? 1+ decimals Submit 18 Attempt 1/10 for 10 pts. Part 5 We now think that dividends will grow by 0.3% from quarter to quarter. The firm just paid the quarterly dividend of $0.29. What is the value of the stock? 1+ decimals Submit Part 5 Attempt 1/10 for 10 pts. We now think that dividends will grow by 0.3% from quarter to quarter. The firm just paid the quarterly dividend of $0.29. What is the value of the stock? 1+ decimals Submit Part 6 Attempt 1/10 for 10 pts. A different analyst thinks that ABC's dividends will grow by 5% for the next 4 quarters, and then grow by 0.3% thereafter. What is the value of the stock? 1+ decimals SubmitStep by Step Solution
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