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Can you check if these are correct answers, Just want to check if all my answers are correct before submission (: Suppose you know that
Can you check if these are correct answers,
Just want to check if all my answers are correct before submission (:
Suppose you know that a company's stock currently sells for $54 per share and the required return on the stock is 9 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current dividend per share 2.33 Hailey Corporation pays a constant $8.00 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on this 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 $ 51.96 The Dahlia Flower Company has earnings of $1.90 per share. The benchmark PE for the company is 14. a. What stock price would you consider appropriate? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if the benchmark PE were 17? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) $ a. Stock price at a PE of 14 b. Stock price at a PE of 17 26.601 32.30 McCabe Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $6.50. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 16 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 $ 78.05Step by Step Solution
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