Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all using excel and show work Constant dividend GEO Inc. has paid annual dividends of $.41,$.47, and $.53 a share over the past

please answer all using excel and show work image text in transcribed
Constant dividend GEO Inc. has paid annual dividends of $.41,$.47, and $.53 a share over the past three years, respectively. The company expects to now maintain a constant dividend. At a discount rate of 14.4 percent, what is the current value per share? First year dividend Second year dividend Third year dividend Pricenow Pricenow So basically it will be dividend last year and have this as the preferred stock dividend for the rest of the years. Different dividends at different period The Siy Foxpays a constant dividend of $1.46 a share. The company announced today that it will continue to pay the dividend for another 2 years and then in Year 3 it will pay a final llquidatin share. What is one share of this stock worth today at a required return of 18.5 per Dividend for the first year Dividend for the next 2 year Dividend at the third year Pequired rate of return Just take the preient valueal all the dividend if you have paid until the last year. Price Kay's Sewing toft is going to reduce its annual dividend by 10 percent a year for the next two years. After that, it will maintain a constant dividend of $2 a thare. Last year, the company pald an annual dividend of $3 per thare. What is the market value of this stockif the required return is 13.7 percent? Will reduce by 10 percent a year for the next two years Afer that it will remaln constat dividend of 5 ? 30 32 Dividend for the 2 nd year 33 Price at the third year fthis one is basically the last year dividend divided by the required rateot return inceit do 14 . 5955401 34 Priceat the beginning of theyear \begin{tabular}{l|l|} \hline 35 \\ 36 \\ 37 \\ 38 & 39 \\ \hline 39 & \end{tabular}

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

Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

6th Edition

0321113624, 978-0321113627

More Books

Students also viewed these Finance questions

Question

Understand the different approaches to job design. page 167

Answered: 1 week ago