Determine the expected dividend per share

Assignment Help Finance Basics

Reference no: EM1352630

DPS CALCULATION
Warr Corporation just paid a dividend of $1.50 a share (that is, D= $1.50). The dividend is expected to grow 7% a year for the next 3 years and then at 5% a year thereafter. What is the expected dividend per share for each of the next 5 years?

CONSTANT GROWTH VALUATION
Harrison Clothiers' stock currently sells for $20.00 a share. It just paid a dividend of $1.00 a share (that is D0= $1.00). The dividend is expected to grow at a constant rate of 6% a year. What stock price is expected 1 year from now? What is the required rate of return?

CORPORATE VALUATION
Smith Technologies is expected to generate $150 million in free cash flow next year, and FCF s expected to grow at a constant rate of 5% per year indefinitely. Smith has no debt or preferred stock, and its WACC is 10%. If Smith has 50 million shares of stock outstanding, what is the stock's value per share.

PREFERRED STOCK RATE OF RETURN
What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 8% of par, and a current market price of (a) $60, (b) $80, (c) $100, and (d) $140?

Reference no: EM1352630

Questions Cloud

What cost does an impact industry pay for capital : What cost does an impact industry pay for capital. What is the total price of producing 120,180, and 240 units of output in the long run.

Consequences of high leverage : If the assets are tangible and the market can supply meaningful valuations then you could say that the value of the company is the assets-in a perfect world.

What is the minimum current that to flow through cylinder : A trombone has an effective length of 160 cm and the speed of sound in air is 345 m/s. Notes are selected by moving a U-shaped tube in or out to change effective length of the trombone.

Technology in home-workplace has negative impact on women : What technology in the home and workplace has a negative impact on women, if any; and (b) do women roles still remain largely associated with the home and domestic chores.

Determine the expected dividend per share : Warr Company just paid a dividend of $1.50 a share. The dividend is expected to grow 7% a year for the next 3 years and then at 5 percent a year thereafter.

Organizational behavior openness to experience : Organizational Behavior Openness to Experience - Are openness to experience and development-oriented behavior the same thing?

Illustrate which combination of fiscal policy actions : Illustrate which combination of fiscal policy actions would be most contractionary for an economy experiencing severe demand-pull inflation.

Explain about customer perception : Explain how would you go about doing that? Ideas about ways to increase customer's perceived value

What force would be required to pull the same wooden : A piston, A, as shown below, has a diameter of 0.61 cm. A second piston, B has a diameter of 3.7 cm. Determine the force, F, necessary to support 500.0 N weight in the absence of friction.

User Account

All Pages