Question
Please help with these 3 problems. :) 1. Maxwell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit
Please help with these 3 problems. :)
1.
Maxwell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 9% per year. If D0 = $2 and rs = 11%, what is the value of Maxwell Mining's stock? Round your answer to the nearest cent.
2.
eBook Holtzman Clothiers's stock currently sells for $32.00 a share. It just paid a dividend of $2.00 a share (i.e., D0 = $2.00). The dividend is expected to grow at a constant rate of 10% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. $ What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
3. Weston Corporation just paid a dividend of $3.5 a share (i.e., D0 = $3.5). The dividend is expected to grow 10% a year for the next 3 years and then at 3% a year thereafter. What is the expected dividend per share for each of the next 5 years? Do not round intermediate calculations. Round your answers to the nearest cent. D1 = $ D2 = $ D3 = $ D4 = $ D5 = $ |
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