Art Plc. has just paid a dividend of £2.8 and intends to sustain a growth in dividends of 5.5% for the first 4 years, 3.5% for the following year and 3% thereafter. What is the current share price considering a 4% discount rate? What are the dividends to be paid in year 5 and year 13?
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- A business’s ordinary shares are currently trading at £4.00 (ex dividend) each in the capital market. Next year’s dividend is expected to be £0.22 per share, and subsequent dividends are expected to grow at an annual rate of 8 per cent of the previous year’s dividend. What is the cost of equity?ABC is expected to pay a dividend of $1.25 every six months for the next four years. The current share price is $25.76 and the relevant discount rate is 14% (compounded semi-annually). What do you expect the share price at the end of year 4 to be? a. $28.82 b. $26.74 c. $31.44 d. $25.12 PLEASE EXPLAIN, do not use PVA formula. Thank you.Assume that a company’s shares has intrinsic value P125 per share and is trading at P130. This company requires an 6% minimum rate of return and will pay a dividend per share next year which is expected to increase by 4% annually. a. How much the company will pay for dividend per share? b. What is the status of the shares in the market?
- Assume that a company’s shares have an intrinsic value of P125 per share and are trading at P130. This company requires a 6% minimum rate of return and will pay a dividend per share next year which is expected to increase by 4% annually. How much the company will pay for dividends per share? What is the status of the shares in the market?NTT Corp is expected to pay a $2.80 annual dividend to its common shareholders next year. Analysts expect these dividends to grow indefinitely at a 6.5 percent annual rate. If the required rate of return on the common stock is 10.8 percent, what is the intrinsic value of the common stock? a. $56.28 b. $61.44 c. $65.12 d. $69.35Assume WXYZ Corp's dividend payment will be $4.56 one year from now, $4.35 two years from now, and $6.42 three years from now. Further assume that after these three years, the dividend will grow by 6.22% each year. If the required rate of return for the industry WXYZ Corp. belongs to is 11.52%, what is the market value of WXYZ Corp's stock under the Dividend Discount Model? O$97.40 $104.99 $52.92 O $119.35 4
- UHFD has just paid a dividend of $2.56 and is expected to increase the future dividends at a rate of 5% per year indefinitely. If you, as a share holder, require 15% per year, what is the current price per share? answer is 26.88Assume XYZ Corp's dividend payment will be $3.12 one year from now, $3.85 two years from now, and $4.12 three years from now. Further assume that after these three years, the dividend will grow by 4.5% each year. If the required rate of return for the industry XYZ Corp. belongs to is 10.7%, what is the market value of XYZ Corp.'s stock under the Dividend Discount Model? O $71.24 Ⓒ$65.45 O $60.19 O $55.72BBB plc plans to pay a dividend next year of 41.2p per share and has a cost of equity of 9% per year. BBB plc has a dividend payout ratio of 50% and its EPS (earnings per share) is 80p. What is the ex-div share price of the company?
- What is the expected annual capital gain yield for Orange Corp stock, based on the Dividend Discount Model? The company plans to pay an annual dividend of of $5.13 per share in one year. The expected annual growth rate of the dividend is 10.45%, and the required rate of return for the stock is 14.82%. Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34). Answer: CheckThe FI Corporation's dividends per share are expected to grow indefinitely by 6% per year. Required: a. If this year's year-end dividend is $5.00 and the market capitalization rate is 10% per year, what must the current stock price be according to the DDM? Note: Round your answer to 2 decimal places. b. If the expected earnings per share are $10.00, what is the implied value of the ROE on future investment opportunities? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. How much is the market paying per share for growth opportunities (i.e., for an ROE on future investments that exceeds the market capitalization rate)? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Current stock price b. Value of ROE c. Amount % per shareAlbright Motors is expected to pay a year- end dividend of $3.00 a share (D1 = $3.00). The stock currently sells for $30 a share. The required (and expected) rate of return on the stock is 16 percent. If the dividend is expected to grow at a constant rate, g, what is g? a. 7.00% b. 13.00% C. 10.05% d. 5.33% e. 6.00%