Dividends are anticipated to maintain

Assignment Help Financial Management

Reference no: EM132006436

1. Apocalyptica Corp. pays a constant $11.01 dividend on its stock. The company will maintain this dividend for the next 14 years and will then cease paying dividends forever. If the required return on this stock is 15 percent, what is the current share price? Answer with 2 decimals (e.g. 45.45).

2. The next dividend payment by Hot Wings, Inc., will be $4.71 per share. The dividends are anticipated to maintain a 0.05 growth rate forever. If the stock currently sells for $20 per share, what is the required return? Anser with 4 decimals (e.g. 0.1234)

Reference no: EM132006436

Questions Cloud

What is meant by diminishing returns of an input : a) What is meant by diminishing returns of an input? b) Does it always occur in the short run? Discuss

Considering change in its cash-only policy : The Snedecker Corporation is considering a change in its cash-only policy. what is the break-even price per unit that should be charged under new credit policy.

How much money will you need at retirement : You plan to live 20 years in retirement, expect inflation to be 3% and investments to return 5%. How much money will you need at retirement?

What is the expected price of stock : Expected constant growth rate (g) = 5%. What is the expected price of the stock?

Dividends are anticipated to maintain : The dividends are anticipated to maintain a 0.05 growth rate forever. If the stock currently sells for $20 per share, what is the required return?

Japanese subsidies or dumping : If the United States is a net importer of a product that is being subsidized or dumped by Japan, not only do U.S. consumers gain

Monetary and fiscal policy on aggregate demand : What are the implications of these lags for the debate over active versus passive policy?

Describe the various pre-trial stages of criminal trial : What is the dual-court system? Identify and explain the three levels characteristic of the federal judiciary - Identify and describe the various pre-trial stage

What is the current share price : If the required return is 0.11 and the company just paid a $0.65 dividend, what is the current share price?

User Account

All Pages