Westpac pays a current dividend of $0.5, which is expected to grow at a rate of 4% indefinitely. The required rate of return agreed by Westpac shareholders is 6%. What is the current value of the Westpac share based on the constant-growth dividend discount model (DDM)? Select one: a. $23 b. $20 c. $8.67 d. $25 e. $26
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Westpac pays a current dividend of $0.5, which is expected to grow at a rate of 4% indefinitely. The required
$23
$20
$8.67
$25
$26
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- Answer the multiple-choice question below: 1. WICB’s stock’s intrinsic value is $48.40, the required rate of return is 12.5 percent and the dividend growth rate is 10 percent, what is WICB’s recent dividend? Select one: a. $1.21 b. $4.80 c. $1.25 d. $0.20 e. $1.10A firm pays a current dividend of $1, which is expected to grow at a rate of 6% indefinitely. If the current value of the firm's shares is $106, what is the required return applicable to the investment based on the constant-growth dividend discount model (DDM)? (Do not round intermediate calculations.)Blue is currently selling for $26 per share. Its next dividend (in one year) is forecasted to be $1. Immediately after the dividend is paid, you expect the price to be $33. a. What is its expected dividend yield? b. What is its expected capital gain rate? c. What is the equity investors' expected return? Question content area bottom Part 1 a. Dividend yield: enter your response here%. (Round to two decimal places.) b. Capital gain rate: enter your response here%. (Round to two decimal places.) c. Expected Return: enter your response here%. (Round to two decimal places.)
- The most recent dividend paid by company J was 2.45 per share. You think dividends will grow at a constant rate of 2.1% per year-i.e. the next dividend will be greater than the most recent one. Assume that the required rate of return for investors is 6.0%. According to the Dividend Discount Model, what should be price per share?Suppose Dragons, Inc. is expected to pay an annual dividend of $0.85 at t=1. Thereafter the dividend will increase at a growth rate g = 25% for two years, and at a growth rate g = 3% after two years. What should you pay for the stock at t=0 if the appropriate discount rate is 8%? Group of answer choices 24.47 18.98 27.47 34.67The share of XYZ company is expected to distribute 3.5$ dividend a year from now, 3.5$ dividend 2 years from now and 5$ dividend 3 years from now. It is also expected that the share price will be equal to 70$ at the year 3. If the required rate of return on this share is 12%, what is the price right now? Select one: a.59.30 b.67.12 C.58.90 O d.61.10
- Estimate its cost of common equity, Maxell and Associcates recently hired you. Obtain the following data, D0=$0.90, P0= $27.50, gl=7% constant. Based on the dividend grwoth model, What is the cost of common for reinvested earnings? (10.50%,9.29%,10.08%,9.68%,10.92%)Answer the following questions using the dividend discount model to value stock. Part A (5 points) - The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. Francis' cost of equity is 10.33%. What is the company's current stock price?4. The following information is available for ABC Company. Earnings per share: Rs.5.00 Rate of return required by shareholders: 16 percent. Assuming that the Gordon valuation model holds, what rate of return should be earned on investments to ensure that the market price is Rs. 50 when the dividend payout is 40 percent?
- How much would you be prepared to pay for a share in two years' time when it begins to pay a $0.17 dividend each year and is currently priced at $3? Assume the required rate of return is 8.5% p.a.10. Consider the following price and dividend data for Quicksilver Inc.: Year Price (£) Dividend (£) 0 10 1 0.14 2 0.14 3 14 0.14 Assume that you purchased Quicksilver's share in year 0 and sold it at the end of year 3. Your annual rate of return for holding this share is closest to ________. A. 8% B. 14% C. 20% D. 19%Blue is expected to pay a dividend of $1.69 in one year. You expect this dividend to grow by 6.1% per year. What is the price per share if the discount rate (equity cost of capital) is 11.4%? Question content area bottom Part 1 The price per share is $enter your response here. (Round to the nearest cent.)
