Homework Helper

Not Rated (0)

$17/per page/

About Homework Helper

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
Accounting,Applied Sciences,Art & Design,Chemistry,Economics,Essay writing Hide all
Teaching Since: Apr 2017
Last Sign in: 419 Weeks Ago
Questions Answered: 3232
Tutorials Posted: 3232

Education

  • MBA,MCS,M.phil
    Devry University
    Jan-2008 - Jan-2011

  • MBA,MCS,M.Phil
    Devry University
    Feb-2000 - Jan-2004

Experience

  • Regional Manager
    Abercrombie & Fitch.
    Mar-2005 - Nov-2010

  • Regional Manager
    Abercrombie & Fitch.
    Jan-2005 - Jan-2008

Category > Business & Finance Posted 19 May 2017 My Price 7.00

Stock Valuation.

 

Stock Valuation. Most corporations pay quarterly dividends 011 their common stock rather than annual dividends. Barring any unusual circumstances during the year. the board raises. lowers. or maintains the current dividend once a year and then pays this dividend out in equal quarterly investment to its shareholders.

a. Suppose a company current pays a 52.40 annual dividend on its common stock in a single annual installment. and management plans on raising this dividend by 6 percent per year indefinitely. If the required return on this stock is 12 percent what is the current share price?

b. Now suppose the company in (a) actually pays its annual dividend in equal quarterly installments: thus the company has just paid a $.60 dividend per share, as it has for the previous three qUal1CI"S. What is your value for the current share price now? (Hint: Find the equivalent annual end-of-year dividend for each year.) Comment on whether you think this model of stock valuation is appropriate,

 
View less »

Answers

Homework Helper
Not Rated (0)
Status NEW Posted 19 May 2017 01:05 PM My Price 7.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l

Not Rated(0)