User Account

All Pages

What is the dividend at the end of year five

Assignment Help Financial Accounting
Reference no: EM132958243

Dividends of Super Drug, Inc. will grow at 25 percent a year for the next 3 years, 18 percent a year for years 4-6, and at a constant rate of 5 percent thereafter. The company just paid a dividend of $1.50 and you require a 15% rate of return from stocks with this risk level.

Problem 1: What is the dividend at the end of year 5?

a. 3.46

b. 4.08

c. 4.58

d. 2.34

e. 2.93

Problem 2: How much is this stock worth to you?

a. 33.27

b. 11.41

c. 16.45

d. 21.85

e. 50.54

Reference no: EM132958243

Questions Cloud

Which is the correct debt margin amount : Which is the correct debt margin amount? The rate of debt limitation applicable to the Hilton community is 6 percent of total property valuation.
Compute the present value : Compute the present value of $3,000 paid in four years using the following discount rates: 3 percent in year 1, 4 percent in year 2, 5 percent in year 3,
Construct first row of the amortization table for mortgage : Construct the first row of the amortization table for their mortgage. After making their first payment, what is the remaining balance?
Prepare journal entry in the book of guillen company : Prepare journal entry in the book of Guillen Company to record the changes in the equity of ABC Corporations as a result of the revaluation
What is the dividend at the end of year five : What is the dividend at the end of year 5? Dividends of Super Drug, Inc. will grow at 25 percent a year for the next 3 years, 18 percent a year for years.
Calculate the variable cost per unit : Calculate the variable cost per unit when a unit is sold for $100 each and the contribution margin per unit is $40
What is the total interest earned by the investment : What is the total interest earned by the investment? The total interest paid on an investment is the difference between cash out, or A
What are the advantages of the net present social value : What are the advantages and disadvantages of the net present social value model and project scoring? Are they used in practice? Explain in detail.
How does the codification define a performance obligation : How does the codification define a "Performance obligation," provide appropriate numerical reference for your answer

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find the return on assets and return on equity for the firm

Sandhill, Inc., has net income of $14,964,000 on net sales of $348,000,000. Find the return on assets and return on equity for the firm

  Usefulness of capital investment appraisal

Consultants for guidance in reviewing two capital projects the company are considering with the aim of delivering increased profits for distribution to shareholders.

  Prepare journal entries to record the transactions

On 2 August, the directors allotted 100,000 shares to the applicants. Prepare journal entries to record the above transactions

  Variable cost per unit and total fixed cost

Falcon Company produces and sells a single product. The company would like to project its net operating income (NOI) for the coming year assuming an increase in unit sales but with price, variable cost per unit, and total fixed cost remaining the sam..

  How much interest expense would be incurred by december

If cash is borrowed on a $150,000 8-month 10% note on August 1, how much interest expense would be incurred by December 31?

  How the relationship of the public accounting firm

How the relationship of the public accounting firm to Spacecraft differs from the relationship of the internal auditing staff to Spacecraft.

  What is the depreciation charge for the first year

A machine was purchased for $30,000. Shipping charges were $600 and install was $400. It has a useful life of 8 years. At the end of 8 years it will require $900 of dismantling charges to be sold for $6,000. What is the depreciation charge for the fi..

  What tris co should report its held for sale property at

In its December 31, 2020 balance sheet, Tris co. should report its held for sale property at? Tris co. acquired through foreclosure a property comprising land

  Company direct labor budget for the upcoming fiscal year

The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,000 7,500 8,000 10,300. Complet..

  What effect will the growth have on funds

If the dividend payout is only 25 percent, what effect will the growth have on funds? What effect will the growth have on funds?

  Partnership transactions

Partnership Transactions: Partner and Partnership Partnership EFGH is a calendar year, accrual basis partnership. Partner G is a calendar year, cash basis partner. Partnership EFGH rents property from Partner G. EFGH pays market rate rent of $4,000 p..

  How wynne should record the acquisition cost of franchise

How Wynne should record the acquisition cost of the franchise on July 1, 2020 at? On July 1, 2020, Ed Wynne signed an agreement to operate as a franchisee

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd