Xytex Products just paid a dividend of $1.92 per share, and the stock currently sells for $38. If the discount rate is 15 percent, what is the dividend growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.6, a debt-to-equity ratio of .4, and a tax rate of 40 percent. Based on this information, what is Lauryn’s asset beta? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
JJ Industries will pay a regular dividend of $.65 per share for each of the next four years. At the end of the four years, the company will also pay out a $71 per share liquidating dividend, and the company will cease operations. If the discount rate is 8 percent, what is the current value of the company’s stock? (Do not round intermediate calculations. Round
Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $55, $312, and $92, respectively. If Able undergoes a 3-for-4 reverse stock split, what is the new divisor? (Do not round intermediate calculations. Round your answer to 5 decimal places.
Star Light & Power increases its dividend 2.3 percent per year every year. This utility is valued using a discount rate of 10 percent, and the stock currently sells for $46 per share. If you buy a share of stock today and hold on to it for at least three years, what do you expect the value of your dividend check to be three years from today? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Could I Industries just paid a dividend of $1.25 per share. The dividends are expected to grow at a 16 percent rate for the next 5 years and then level off to a 5 percent growth rate indefinitely. If the required return is 17 percent, what is the value of the stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Netscrape Communications does not currently pay a dividend. You expect the company to begin paying a $2.6 per share dividend in 15 years, and you expect dividends to grow perpetually at 3.6 percent per year thereafter. If the discount rate is 13 percent, how much is the stock currently worth? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $21, $10, $7.2 and $2.5. Afterwards, the company pledges to maintain a constant 3 percent growth rate in dividends forever. If the required return on the stock is 15 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Given the information below for Seger Corporation, compute the expected share price at the end of 2014 using price ratio analysis. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Year
2008
2009
2010
2011
2012
2013
Price
$
100.50
$
106.40
$
105.10
$
102.60
$
124.10
$
139.50
EPS
2.65
3.36
4.16
4.86
7.50
8.50
CFPS
7.77
8.64
9.01
10.62
12.10
13.30
SPS
57.60
62.60
62.00
65.50
76.70
84.70
Using P/E ratio
$
Using P/CFPS ratio
$
Using P/S ratio
$
Suppose the dividends for the Seger Corporation over the past six years were $3.06, $3.14, $3.23, $3.31, $3.41, and $3.46, respectively. Compute the expected share price at the end of 2014 using the perpetual growth method. Assume the market risk premium is 10.8 percent, Treasury bills yield 4.1 percent, and the projected beta of the firm is .93. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Share price
$