SCI just paid a dividend (Do) of $1.68 per share, and its annual dividend is expected to grow at a constant rate 3.50% per year. If the required return (rs) on SCI's stock is 8.75%, then the intrinsic value of SCI's shares is per share.
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- Growth Company's current share price is $20.30 and it is expected to pay a $0.90 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 4.4% per year. a. What is an estimate of Growth Company's cost of equity? b. Growth Company also has preferred stock outstanding that pays a $2.25 per share fixed dividend. If this stock is currently priced at $28.25, what is Growth Company's cost of preferred stock? c. Growth Company has existing debt issued three years ago with a coupon rate of 6.1%. The firm just issued new debt at par with a coupon rate of 6.6%. What is Growth Company's cost of debt? d. Growth Company has 5.5 million common shares outstanding and 1.4 million preferred shares outstanding, and its equity has a total book value of $50.2 million. Its liabilities have a market value of $19.5 million. If Growth Company's common and preferred shares are priced as in parts (a) and (b), what is the market value of Growth Company's assets? e. Growth…CSY Bhd is expected to pay a RM 0.50 per share dividend at the end of the year (that is, D1 = RM 0.50). The dividend is expected to grow at a constant rate of 7 percent a year. The required rate of return on the stock, rs, is 15 percent. What is the stock’s value per share?Raspusin Corp is expected to pay a $0.85 per share dividend at the end of the year (that is D1). The dividend is expected to grow at a constant rate of 2% a year. The required rate of return on the stock, rs is 17%. What is the stock’s value per share?
- Tresnan Brothers is expected to pay a $1.90 per share dividend at the end of the year (i.e.. D1 = $1.90). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 12%. What is the stock's current value per share? Round your answer to the nearest cent.Boehm Incorporated is expected to pay a $1.40 per share dividend at the end of this year (i.e., D1 = $1.40). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 18%. What is the estimated value per share of Boehm's stock? Do not round intermediate calculations.Lala Ltd's stock is currently selling for $5 per share. Lala Ltd paid $0.5 dividend and has growth rate of 10%. If the required rate of return on this stock were 10%, calculate the stock's fair price and also the dividend yield for the stock at the price.