What is the present value of the dividend

Assignment Help Financial Management

Reference no: EM132010267

A stock has an expected annual return of 11.3 percent and is expected to pay annual dividends forever. The first annual dividend is expected in 1 year and all subsequent annual dividends are expected to grow at a constant rate of 4.61 percent per year. The dividend expected in 1 year from today is expected to be 18.56 dollars. What is the present value (as of today) of the dividend that is expected to be paid in 5 years from today?

Reference no: EM132010267

Questions Cloud

Harris owns one share of stock of fairfax paint : Harris owns one share of stock of Fairfax Paint and one share of stock of Litchfield Design.

Share of stock of platinum water packaging : Goran owns one share of stock of Platinum Water Packaging and one share of stock of White Mountain Consulting.

What is the dividend expected to be in nine years : Oxygen Optimization stock is currently priced at 43.18 dollars per share. What is the dividend expected to be in 9 years?

What growth rate is expected for litchfield design dividends : Kwame owns one share of stock of Fairfax Paint and one share of stock of Litchfield Design. What growth rate is expected for Litchfield Design dividends?

What is the present value of the dividend : What is the present value of the dividend that is expected to be paid in 5 years from today?

How does inflation distort ratio analysis comparisons : How does inflation distort ratio analysis comparisons for one company over time (trend analysis) and for different companies that are being compared?

What does double taxation of corporate income mean : What does double taxation of corporate income mean? Could income ever be subject to triple taxation?

What is the fund required rate of return : If the market's required rate of return is 10% and the risk-free rate is 3%, what is the fund's required rate of return?

New seven-octave voice emulation implant : Aria Acoustics, Inc., (AAI) projects unit sales for a new seven-octave voice emulation implant as follows: What is the NPV of the project?

User Account

All Pages