Suppose in 2023 the expected dividends of Fordson, Inc. stock will equal $260M with a discount rate of 8% and an expected growth rate for the dividends of 6%. Assuming constant growth rate, if interest increases to 9%, will the val of the company increase or decrease and by how much?
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- Whizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and the investors require a return of 12%. a) What would be the likely stock price in year 5? b) What would be per annum rate of return implied by a change in prices from time 0 to time 5?Suppose in 2023 the expected dividends of Fordson, Inc. stock will equal $260M with a discount rate of 8% and an expected growth rate for the dividends of 6%. Assuming constant growth rate, if interest increases to 9%, will the val of the company increase or decrease and by how much?Whizcom Inc. is expected to pay a dividend of $1 next period. Dividends are expected to grow at 2% per year and the investors require a return of 12%. i) Compute the current stock price for Whizcom Inc.ii) What would be the likely stock price in year 5?iii) What would be per annum rate of return implied by a change in prices from time 0 to time 5?
- grey manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1=$1.25). The stock sells fo $27.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?Bugatti, Inc is expected to pay a dividend of $3.55 next year (i. e., D1 = 3.55) and its current stock price is $48. The discount rate for the company is 13%. If the market expects Bugatti's dividends to grow at a constant rate forever, then the growth rate must be %If XYZ Company has 2023 earnings per share of $3 and its growth rate is 9%, how long will it take XYZ to double its earnings per share?
- Suppose the dividends for the Seger Corporation over the past six years were $1.40, $1.48, $1.57, $1.65, $1.75, and $1.80, respectively. Assume that the historical (arithmetic) average growth rates will remain the same for 2022. Compute the expected share price at the end of 2022 using the perpetual growth method. Assume the market risk premlum is 11.7 percent, Treasury bills yield 5.9 percent, and the projected beta of the firm is 0.88. Note: Do not round Intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. Share price S 1.80The next dividend payment by Savitz, Inc., will be $2.43 per share. The dividendsare anticipated to maintain an annual growth rate of 3.5% forever. If the stockcurrently sells for $70 per share, what is the required return?Consider the following security, which you expect will grow rapidly for three years followed by a steady growth indefinitely. Emerson Tool and Die Company Earnings Per Share, 2020 $2.50 Dividend Payout Rate $0.60 Extradordinary Growth Rate 0.35 Sustainable Growth Rate 0.05 Market Capitalization Rate 0.15 Required: Using the information in the tables above, please calculate the cash flows per period and the price of this stock. (Use cells A5 to B9 from the given information to complete this question.) Time Cash Flow 1 2 3 Horizon Value Present Value (Price)
- A company's next dividend is USD6.5 which is expected to remain stable in the coming years, till perpetuity. Your required rate of return is 16%. a. How much will you offer to buy this stock at? b. If the dividends will grow at a rate of 4% per year, what will be the dividend that the company will distribute in year 16? C. If the dividends will grow at a rate of 2%, what will be the price of the stock in year 9?Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $27.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? a. 5.95% b. 5.54% O c. 6.01% O d. 6.91% O e. 6.07%Franklin Corporation is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $32.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate? a. 6.01% b. 6.17% c. 6.33% d. 6.49% e. 6.65%