HomeworkLib
Question

Mariota Corp. just paid a dividend of $3.90 per share on its stock. The dividend growth...

Mariota Corp. just paid a dividend of $3.90 per share on its stock. The dividend growth rate is expected to be 3.6 forever and investors require a return of 12.8 percent on this stock. What will the stock price be in 13 years?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Anoen Calculation of Stok Price be in 13 years, formula = Po Diy Ке - ч where Poid = Price in 13 years, Die - Dividend un Yea

0 0
Add a comment
Know the answer?
Add Answer to:
Mariota Corp. just paid a dividend of $3.90 per share on its stock. The dividend growth...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Mariota Corp. just paid a dividend of $4.25 per share on its stock. The dividend growth...

    Mariota Corp. just paid a dividend of $4.25 per share on its stock. The dividend growth rate is expected to be 3.25 forever and investors require a return of 13.5 percent on this stock. What will the stock price be in 13 years? Multiple Choice $57.16 $12.51 $64.88 $49.26

  • Mariota Corp. just paid a dividend of $3.45 per share on its stock. The dividend growth rate is expected to be 4.05 fore...

    Mariota Corp. just paid a dividend of $3.45 per share on its stock. The dividend growth rate is expected to be 4.05 forever and investors require a return of 11.9 percent on this stock. What will the stock price be in 11 years?

  • Problem 8-14 Stock Valuation [LO1] Bayou Okra Farms just paid a dividend of $3.90 on its...

    Problem 8-14 Stock Valuation [LO1] Bayou Okra Farms just paid a dividend of $3.90 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 13 percent for the first three years, a return of 11 percent for the next three years, and a return of 9 percent thereafter. What is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal...

  • TUV Inc., just paid a dividend of $4.5 per share on its stock. The growth rate...

    TUV Inc., just paid a dividend of $4.5 per share on its stock. The growth rate in dividends is expected to be a constant 6 percent per year indefinitely. Investors require an 20 percent return on the stock for the first three years, then a 12 percent return for the next three years, and then an 9 percent return thereafter. What is the current share price? Answer to two decimals, carry intermediate calcs. to four decimals.

  • 1) A7X Corp. just paid a dividend of $1.30 per share. The dividends are expected to...

    1) A7X Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 30 percent for the next 9 years and then level off to a growth rate of 9 percent indefinitely. If the required return is 13 percent, what is the price of the stock today? 2) Burnett Corp. pays a constant $19 dividend on its stock. The company will maintain this dividend for the next 6 years and will then cease paying dividends...

  • Sea Side, Inc., just paid a dividend of $1.96 per share on its stock. The growth...

    Sea Side, Inc., just paid a dividend of $1.96 per share on its stock. The growth rate in dividends is expected to be a constant 3.1 percent per year indefinitely. Investors require a return of 25 percent on the stock for the first three years, then a 20 percent return for the next three years, and then a 18 percent return thereafter. What is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places....

  • Rasheed Farm just paid a dividend of $2.65 on its stock. The growth rate in dividends...

    Rasheed Farm just paid a dividend of $2.65 on its stock. The growth rate in dividends is expected to be a constant 4.5 percent per year indefinitely. Investors require a return of 15 percent for the first three years, a return of 13 percent for the next three years and a return of 11 percent thereafter. What is the current share price?

  • Stock Valuation Bretton, Inc., just paid a dividend of $3.15 on its stock. The growth rate in dividends is expected to...

    Stock Valuation Bretton, Inc., just paid a dividend of $3.15 on its stock. The growth rate in dividends is expected to be a constant 4 percent per year, indefinitely. Investors require a 15 percent return on the stock for the first three years, a 13 percent return for the next three years, and then an 11 percent return thereafter. What is the current share price for the stock?

  • The Starr Co. just paid a dividend of $1.32 per share on its stock. The dividends...

    The Starr Co. just paid a dividend of $1.32 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. Required: (a) If investors require a 14 percent return on stock, what is the current price? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) Current price $ (b) If investors require a 14 percent return on stock, what will the price be...

  • The Grist Mill just paid a dividend of $3.46 per share on its stock. The dividends...

    The Grist Mill just paid a dividend of $3.46 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. What will the price of this stock be 7 years from today if investors require an annual return of 13 percent? A. $55 B. $49 C. $43 D. $58

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT