Log in
Finance
1
answer
0
watching
65
views

Pineapple Co.'s stock price is $41.55, and it recently paid a $3.00 dividend. This dividend is expected to grow by 16% for the next 3 years, then grow forever at a constant rate, g; and rs = 16%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.

Watch
1
answer
0
watching
65
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Jarrod Robel
Jarrod RobelLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

Nonconstant growth

Carnes Cosmetics Co.'s stock price is $70.24, and it recently paid a $1.25 dividend. This dividend is expected to grow by 29% for the next 3 years, then grow forever at a constant rate, g; and rs = 11%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.

%

Carnes Cosmetics Co.'s stock price is $74.50, and it recently paid a $1.50 dividend. This dividend is expected to grow by 19% for the next 3 years, then grow forever at a constant rate, g; and rs =14%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.

1- DPS calculation

Weston Corporation just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow 12% 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? Round your answers to two decimal places.

D1 = $ ?
D2 = $ ?
D3 = $ ?
D4 = $ ?
D5 = $ ?

2- Constant growth valuation

Holtzman Clothiers' stock currently sells for $15 a share. It just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow at a constant rate of 4% a year.

What stock price is expected 1 year from now? Round your answer to two decimal places.

What is the required rate of return? Round your answers to two decimal places. Do not round your intermediate calculations.

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in