Firm Z paid a dividend of $2.24 per share this morning. Dividends are expected t
ID: 2660688 • Letter: F
Question
Firm Z paid a dividend of $2.24 per share this morning. Dividends are expected to grow at an annual rate of 4.2% per year forever. What is the amount of the dividend that will be paid 8 years from now? Round your answer to the nearest cent.
Firm B paid a dividend of $1.71 per share this morning. Dividends are expected to grow at an annual rate of 10% per year for the next 3 years. After that, dividends will grow at 3.6% per year forever. What is the amount of the dividend that will be paid 6 years from now? Round your answer to the nearest cent.
Firm M intends to pay a dividend of $3.06 per share at the end of the year, $1.73 per share two years from now and $2.32 per share three years from now. If the required return on the stock is 9%, what is the net present value (i.e., sum of the present values) of these dividends? Round your answer to the nearest cent.
Firm A has always paid a common stock dividend of $2.79 per share each year. They intend to continue paying the same dividend each year forever. If the stock's required return is 6.5%, what is the price per share today? Round your answer to the nearest cent.
Explanation / Answer
Firm Z paid a dividend of $2.24 per share this morning. Dividends are expected to grow at an annual rate of 4.2% per year forever. What is the amount of the dividend that will be paid 8 years from now? Round your answer to the nearest cent.
Firm B paid a dividend of $1.71 per share this morning. Dividends are expected to grow at an annual rate of 10% per year for the next 3 years. After that, dividends will grow at 3.6% per year forever. What is the amount of the dividend that will be paid 6 years from now? Round your answer to the nearest cent.
the amount of the dividend that will be paid 6 years from now = 1.71*1.1^3*1.036^3 = $ 2.53
Firm M intends to pay a dividend of $3.06 per share at the end of the year, $1.73 per share two years from now and $2.32 per share three years from now. If the required return on the stock is 9%, what is the net present value (i.e., sum of the present values) of these dividends? Round your answer to the nearest cent.
The net present value = 3.06/1.09 + 1.73/1.09^2 + 2.32/1.09^3 = $ 6.05
Firm A has always paid a common stock dividend of $2.79 per share each year. They intend to continue paying the same dividend each year forever. If the stock's required return is 6.5%, what is the price per share today? Round your answer to the nearest cent.
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