Company XYZ does not currently pay a dividend. However, their earnings have been growing at a very high rate. Thus, they are expected to begin paying a dividend, starting 7 years from today. Expectations are that the first dividend will be $ 2.6 per share. The dividend is then expected to grow at 32 % per year for 6 years, and at the end of that super-normal growth period, the stock will enter a slower growth perpetuity phase of 9 % per year. The required return on Agilent stock is 13 %. What should be their current stock price? (Please make sure to not do any intermediate rounding and keep at least 6 decimal points throughout solving this problem. Round your final answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234)

Dollar Tree Inc (DLTR) is expected to pay a $1.85 dividend, and it is expected to grow at 9.85% for the next 3 years. After 3 years the dividend is expected to grow at the rate of 5.15% indefinitely. If the required return is 8.15%, what is DLTR's stock value today?

An analyst has made the following estimate of Company Z’s dividends. After 5 years of growing annually at 2% from an initially value of $1.00, company Z is expected to quit growing and pay a constant dividend of $1.5 indefinitely. If the required return is 12%, what should the stock of Company Z sell for today?

Starkiller Base Inc. expects to have a changing dividend policy over the next few years starting with the dividend that they just paid of $4.17. In the following year their dividend will grow by 24.3% and in the year after by 18.4%. Following that they expect their dividends to continue growing at a constant rate of 4.4% forever. If the required rate of return for Starkiller Base is 11.6% per year, what is the price today of their shares?

Trend-Line Inc. has been growing at a rate of 6% per year and is expected to continue to do so indefinitely. The next dividend is expected to be $8 per share. a. If the market expects a 10% rate of return on Trend-Line, at what price must it be selling? (Do not round intermediate calculations.) Current selling price

Company A is a worldwide delivery company that is expected to generate a dividend (per share) of $1.40 one year from now (i.e. at t=1). You are expecting that on average Company A's dividends will grow at 5% each year after that into the indefinite future. Assume for simplicity that all dividends are paid at the end of each year. Suppose that the appropriate discount rate for these dividends is 10%.   a. What is the current stock price for Company A? Assume that any dividend at t=0 has already been paid out. b. What do you expect the stock price of Company A to be next year (i.e. at t=1) immediately after the dividend has been paid out? c. What is the expected return for holding the stock of Company A over the year ahead? Hint: Find the IRR on the expected cash flows from buying and holding the stock for one year. The cash flows should include the purchase and sale of the stock as well as the dividend you will receive

Tattletale News Corporation has been growing at a rate of 10% per year, and you expect this growth rate in earnings and dividends to continue for another 3 years. If the last dividend paid was $11, what will the next dividend be? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. If the discount rate is 25% and the steady growth rate after 3 years is 2%, what should the stock price be today? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

Cape Corp. will pay a dividend of $2.70 next year. The company has stated that it will maintain a constant growth rate of 4.75 percent a year forever. a. If you want a return of 16 percent, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If you want a return of 11 percent, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Microtech Corporation is expanding rapidly, and it currently needsto retain all ofits earnings, hence it does not pay any dividends. However,investors expectMicrotech to begin paying dividends, with the first dividend ofRs.1.00 comingafter three (3) years from today. The dividend should grow rapidly– at a rate of50% per year – during the 4th and 5th year. After 5th year, the company shouldgrow at a constant rate of 8% per year. If the required return onthe stock is 15%,what is the value of the stock today?

Lauren Corporation will pay a dividend of $2.90 next year. The company has stated that it will maintain a constant growth rate of 5.25 percent a year forever. a. If you want a return of 18 percent, How much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. If you want a return of 9 percent, How much will you pay for the stock? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Stock price b. Stock price