subject
Business, 11.09.2019 00:20 floreschachi2873

Assume that the average firm in your company's industry is expected to grow at a constant rate of 5% and that its dividend yield is 6%. your company is about as risky as the average firm in the industry and just paid a dividend (d0) of $3. you expect that the growth rate of dividends will be 50% during the first year (g0,1 = 50%) and 25% during the second year (g1,2 = 25%). after year 2, dividend growth will be constant at 5%. what is the required rate of return on your company’s stock? what is the estimated value per share of your firm’s stock? do not round intermediate calculations. round the monetary value to the nearest cent and percentage value to the nearest whole number.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 23:10
Amazon inc. does not currently pay a dividend. analysts expect amazon to commence paying annual dividends in three years. the first dividend is expected to be $2 per share. dividends are expected to grow from that point at an annual rate of 4% in perpetuity. investors expect a 12% return from the stock. what should the price of the stock be today?
Answers: 1
question
Business, 23.06.2019 00:30
How much of your paycheck do you have immediate access to once you deposit it into your bank account a. all of it b. a portion of it c. none of it
Answers: 1
question
Business, 23.06.2019 09:00
In command economy, who makes production decisions? a. workers b. producers c. consumers d. the government
Answers: 1
question
Business, 23.06.2019 18:00
In financial language, a "quarter" is one quarter of a year, or three months. your annual sales are $123,000. the sales are spread evenly over four quarters except that sales in the last quarter are double any other quarter because of the holidays. what are your sales in the first quarter of the year?
Answers: 3
You know the right answer?
Assume that the average firm in your company's industry is expected to grow at a constant rate of 5%...
Questions
question
Computers and Technology, 12.02.2021 09:30
question
History, 12.02.2021 09:30
question
Mathematics, 12.02.2021 09:30
Questions on the website: 13722363