Link-In Ltd. is forecast to have n ROE of 12% in perpetuity and its dividend payout ratio (DPY) is expected to be equal to 25% in perpetuity. What is Link-In Ltd.'s expected dividend growth rate equal to? a - 25% b- 3% c - 9% d - 12%
Q: Alibaba Group has a share price of $25 today. If Alibaba Group is expected to pay a dividend of…
A: Given Information : Current Share Price = $25 Expected Dividend Per Share = $0.75 Growth in stock…
Q: Puckett Products is planning for $1.4 million in capital expenditures next year. Puckett's target…
A: Given:
Q: A firm pays a 5.80 dividend at the end of year one (d1), has a stock price of 103, and a constant…
A:
Q: Assume that Cola Co. has a share price of $42.88. The firm will pay a dividend of $1.14 in one year,…
A: Share price today (P0) = $42.88 D1 = $1.14 Growth rate (g) = 6.6% r = 8.4%
Q: Tyler Corporation anticipates a P6 dividend per share for the year. Its minimum rate of return is…
A: Calculation of price per share:: Price=Dividend/(ke-g)... Where ke is the cost of capital.. G is…
Q: Halliford Corporation expects ts earnings from that point onward. Each year, retained earnings will…
A:
Q: The Leap Corporation expects next year’s net income to be P15 million. The firm’s debt ratio is…
A: Dividend means the amount given to shareholder of the company as profit distribution by company.…
Q: West Tech Inc. has an expected dividend next year of $3.20 per share, a growth rate for dividends of…
A: Given: Expected dividend next year =$3.20Growth rate =8%Required return =15%
Q: The Duo Growth Company just paid a dividend of $1 per share. The dividend is expected to grow at a…
A: Part (a): Answer: The intrinsic value of share of the stock is $11.17 Calculation of future…
Q: Ocean Holding Corp.'s expected year-end dividend (D1) is $4.00, and its required return is 11 %. The…
A: Given the following information: Expected year-end dividend: $4.00 Required Return: 11% Dividend…
Q: Krell Industries has a share price of $22.32 today. If Krell is expected to pay a dividend of $1.07…
A: Current stock price (P0) = $22.32 Expected dividend (D1) = $1.07 Price after 1 years (P1) = $23.71
Q: What is the expected annual capital gain yield for Orange Corp stock, based on the Constant Dividend…
A: Dividend in one year (D1) = $5.97 Annual growth rate (g) = 0.1024 or 10.24% Required rate of return…
Q: North Side Corp’s most recent dividend was $2.80 and its required return is 11 percent. What is the…
A: Answer Dividend(Do) = $2.80 Dividend (D1) = ($2.80 + 6%) = $2.968 Required rate of return = 11%…
Q: The dividends and stock price of Mimi Company are expected to grow at 5 percent per year at very far…
A: Last dividend (D0) = P 2.50 Stock price (P0) = P 25 Floatation cost (F) = P 2.50 Growth rate (g) =…
Q: KFC is expected to have earnings per share of $4 this year and expect that they will pay out $1.50…
A: The expected growth rate can be referred to as the return expected by the investors from an…
Q: Krell Industries has a share price of $21.88 today. If Krell is expected to pay a dividend of…
A: The stock price which is the maximum price to be paid for share consists of dividends and terminal…
Q: a) LTX's growth rate of earnings is % (Round your answer to four decimal places) (b) If LTX's…
A: Information Provided: EPS = $5.275 Expected DPS = $3.413 Retain = $1.861 Expected return = 16.516%
Q: Evelyn Incorporated is expected to pay a dividend at year end of D1 = $2.25. This dividend is…
A: Before tax cost of debt =7.50% After tax cost of debt = Before tax cost of debt * (1-tax rate) After…
Q: Grateful Eight Co. is expected to maintain a constant 4.4 percent growth rate in its dividends…
A: As per Dividend Discount Model,Ke = (D1/P0) + gWhereP0 = Current Stock priceD1 = Expected Dividendke…
Q: Suppose your company is expected to grow at a constant rate of 5 percent long into the future. In…
A: The value of a firm's stock today is the sum total of future dividends received and future value of…
Q: Jone Corporation will pay an annual dividend of $0.65 one year from now. Analysts expect this…
A: Dividend discounting model is a tool used to estimate the current price of the stock of a company.…
Q: The required rate of return for Ola Industries is 15.75 percent. The stock pays a current dividend…
A: This question require us to calculate the estimated price of the stock of Ola industries. We can…
Q: What is the growth rate for Dalton Inc.?
A: Expected rate of return is the return expected from an investment. It is the rate that an investor…
Q: vidends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on…
A: Plowback ratio also known as retention ratio is a financial metric that determines the relationship…
Q: In mid-2015, Coca-Cola Company (KO) had a share price of $39. Its dividend was $1.00 per year, and…
A: The share price is calculated below:
Q: Suppose the Pale Hose Corp. is expected to pay a dividend next year of OMR2.25 per share. Both sales…
A: Given: Suppose the Pale Hose Corp. is expected to pay a dividend next year of $2.25 per share. Both…
Q: XYZ Inc’s most recent dividend was $20 per share. Dividends are expected to grow at an 9% annual…
A: Recent Dividend = 20 Growth rate = 9% Required rate of return = 15% Using Constant Growth Model,…
Q: Greshak Ltd. forecasts its long-term sustainable growth rate to be 4.0%. If the firm's required rate…
A: Given details are : Sustainable growth rate (g) = 4% = 0.04 Required rate of return (r) = 12% = 0.12…
Q: The next dividend payment by Savitz, Inc., will be $1.48 per share. The dividends are anticipated to…
A: a) Dividend Yield = Dividend / stock Price
Q: Super Carpeting Inc. just paid a dividend (D0D0) of $1.44, and its dividend is expected to grow at a…
A: Value of share = D0*(1+g)/(r-g)
Q: The investment banking firm of Stan Inc. will use a dividend valuation model to appraise the shares…
A: The value which is determined by how much someone is willing to pay for it is the value of the…
Q: In early 2018, Coca-Cola Company (KO) had a share price of $43.36, and had paid a dividend of…
A: Solution:- Companies pay a part of their earnings to shareholders, which is known as dividend. Now,…
Q: The next dividend payment by Parkway Construction Bhd will be RM2.35 per share. The dividends are…
A: Dividend yield is expressed in terms of percentage that depicts the percent of dividend paid to its…
Q: the dividend discount model what is the value of the Jasmine limited share if the firm's cost of…
A: The present value of a stock can be found using the two stage dividend discount model. Increase the…
Q: Arts and crafts will pay a divided of $5 per share in 1 year. It sells at $50 a share, and firms in…
A: As per dividend discount model, Price of stock = Dividend at the end of year 1 /(expected return -…
Q: Dalmatian Co. is currently paying a dividend of P2.20 per share. The dividends are expected to grow…
A: Dividend: It is the distribution of profit earned by a company its common stock shareholders. In…
Q: Suppose the growth rate of the firm's profit is 7 percent, the interest rate is 9 percent, and the…
A: In the given question we need to compute the value of the firm.
Q: Luther Industries has a dividend yield of 3.5% and a cost of equity capital of 12%. Luther…
A: Dividend yield = Dividend / Price
Q: The dividends and stock price of Mimi Company are expected to grow at 5 percent per year at very far…
A: The given problem can be solved using constant dividend growth model.
Q: Lamey Gardens has a dividend growth rate of 5.6 percent, a market price of $13.16 a share, and a…
A: Given: Growth rate = 5.6% Market price = $13.16 Required return = 14%
Q: Keenan Co. is expected to maintain a constant 5.2 percent growth rate in its dividends indefi…
A: GIVEN, growth = 5.2%dividend yield=6.3%
Q: Corcoran Inc. uses the Gordon Growth Model to estimate ks; its current stock price is $30; it…
A: a) Assumption: The after-tax cost of debt is assumed as 10%.
Q: The Wei Corporation expects next year's net income to be $10 million. The firm is currently financed…
A: In residual distribution model, we distribute dividend from net income after retaining funds for…
Q: Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $4.15 next year. The growth…
A: The dividend discount model states that the dividends that are paid by a company are good indicators…
Q: Suppose your company is expected to grow at a constant rate of 6 percent long into the future. In…
A: Computation of value of firm’s stock:
Q: You anticipate that Liebendauer Enterprises (ticker: LBE) will have earnings per share of $5 this…
A: Earning per share = $5 Dividend per share = $1.25 Retention ratio (RR) = (Earning per share-Dividend…
Q: What is the dividend growth rate using the constant growth model
A: Constant Growth Model: This model assists in the evaluation of share. Another name of constant…
Link-In Ltd. is
a - 25%
b- 3%
Step by step
Solved in 2 steps
- The current market price of Venus Filters Ltd is Rs.67. The expected dividend after a year is Rs.1.40, and this dividend is expected to grow at a constant rate of 10% p.a. What is the required rate of return for shareholders? a. 12.09% b. 8.12% c. 6.18% d. 0%A company is expected to pay out 40% of its expected earnings per share of €0.5 next year as dividends. The earnings are expected to grow 2% per year in perpetuity and the cost of equity is 7%. Supposing that the company is a stable growth dividend paying, calculate the expected PE ratio. P/E=Payout ratio*(1+g)/(r-g) A. 4 B. 8 C. 10 D. 20 E. 25Gray 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%
- Suppose that X company expected to pay$1.05 dividends for the coming year and currently the company paid a dividend of $1, What is the value of the stock? If the required return is 10%. And the growth rate is expected to continue.Gordon Growth Company is expected to pay a dividend of $4 next period and dividends are expected to grow at 6% per year. The required return is 16%. What is the price expected to be in year 4? Answer a. $41.6 b. $50.50 c. $40 d. $10What is the required rate of return on a share whose value is Kshs 62.50, its upcoming dividend is Kshs 5 and the growth rate is 4%?
- Gordon Growth Company is expected to pay a dividend of $4 next period and dividends are expected to grow at 6% per year. The required return is 16%. What is the price expected to be in year 4? a. $40 b. $10 c. $41.6 d. $50.507. In future periods, YZX Inc. is expected to maintain a dividend payout 40%, a net profit margin of 4.6%, a total asset turnover of 2.2, and an equity multiplier of 1.35. What is YZX's projected sustainable growth rate? 5.46% 8.20% 8.55% 9.00%Company Z earnings and dividends per share will grow indefinitely by 4.1% a year if next year's dividend is $9.0. The market capitalization rate is 13.9%. If Company Z were to distribute all its earnings, it could maintain a level dividend stream of $11.3 a share. How much is the market actually paying per share for growth opportunities? A. -11.6 B. 33.8 C. 15.0 D. 10.5
- 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%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?Genentech is expecting both earnings and dividends to grow by 15% in Year 1, 0% in Year 2, by 5% in Year 3, and at a constant rate of 10 percent in Year 4 and thereafter. The required return on Genentech is 15 percent, and it sells at its equilibrium current price $288. What is the approximate value of its expected dividend in Year 1, D1? Please show work on EXCEL!!! A) $0 B) $1.25 C) $1.75 D) $2.05 E) $2.85
