Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please reply ASAP Question 4 a. Hoodies Inc. has paid a constant amual dividend of RM3.60 a share for the past 12 years. Recently, the

please reply ASAP image text in transcribed
Question 4 a. Hoodies Inc. has paid a constant amual dividend of RM3.60 a share for the past 12 years. Recently, the firm's dividend increases by 15.5 percent each year for three years. Thereafter the dividends will increase by 2.3 percent annually. Calculate the current value per share if the required retum on this stock is 12.5 percent. (14 marks) b. Papi Wholesale is expected to pay the following dividends over the next four years: RM15, RM17.5, RM22.5, and RM3.60. Afterwards, the company will maintain a constant 4.5 percent growth rate in dividends, forever. Calculate current share price if the required retum on the stock is 16.8 percent. (11 marks) c. The common stock of Tralala Berhad is valued at RM15.80 a share. The company increases its dividend by 6.5 percent annually and expects the next dividend to be RM0.36 per share. What is the total rate of retum on this stock? (2.5 marks)

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_2

Step: 3

blur-text-image_3

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

More Books

Students also viewed these Finance questions

Question

Define promotion.

Answered: 1 week ago

Question

Write a note on transfer policy.

Answered: 1 week ago

Question

Discuss about training and development in India?

Answered: 1 week ago

Question

Explain the various techniques of training and development.

Answered: 1 week ago

Question

Explain the various techniques of Management Development.

Answered: 1 week ago