Description of this paper

Loading

QUESTION 1.) Lohn Corporation is expected to pay the following-(Answered)

Description

Instant Solution ? Click "Buy button" to Download the solution File


Question

QUESTION 1.)

Lohn Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $6.50. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 16 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current share price

$


QUESTION 2.)

A7X Corp. just paid a dividend of $2.80 per share. The dividends are expected to grow at 20 percent for the next eight years and then level off to a growth rate of 5 percent indefinitely. If the required return is 13 percent, what is the price of the stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price

$



QUESTION 1.)

 

Lohn Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and

 

$6.50. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever.

 

If the required return on the stock is 16 percent, what is the current share price? (Do not round

 

intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

 

$

 


 

Current share price

 


 

QUESTION 2.)

 

A7X Corp. just paid a dividend of $2.80 per share. The dividends are expected to grow at 20 percent for

 

the next eight years and then level off to a growth rate of 5 percent indefinitely. If the required return is 13

 

percent, what is the price of the stock today? (Do not round intermediate calculations and round

 

your answer to 2 decimal places, e.g., 32.16.)

 

Stock price

 


 

$

 


 

 

Paper#9210789 | Written in 27-Jul-2016

Price : $19
SiteLock