511pointseBookProblem 7-20 Finding the Dividend [LO 1]Matterhorn Corporation stock currently sells for $64.98 per share. The market requires areturn of 9 percent on the firm's stock. If the company maintains a constant 5.75 percentgrowth rate in dividends, what was the most recent dividend per share paid on the stock?Note: Do not round intermediate calculaqtions and round your answer to 2 decimalplaces, e.g., 32.16.Dividend per shareHintPrintReferences

Step 1: The calculation of the dividend per share AB1Stock Price (P0) $ 64.98 2Required return (r…

Answered: 5 11 points eBook Problem 7-20 Finding…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter11: The Cost Of Capital

Section: Chapter Questions

Problem 8PROB

See similar textbooks

Similar questions

Problem 9.6 Nynet, Inc., paid a dividend of $4.40 last year. The company's management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 19.0 percent, what is the current value of the stock? (Round answer to 2 decimal places, e.g. 15.25.) Current value Click if you would like to Show Work for this question: Open Show Work
11:26 What is the dividend yield on Stock A that sells at $20/share, when Company A pays a quarterly dividend of $0.10 per share? Skip dividend yield = [ ? ] % Give your answer as a percent rounded to the nearest tenth. Hint: Dividend Yield annual dividend share price Enter ^ v Done W a 123 space return Help
3 The common stock of Auto Deliveries sells for $28.16 a share. The stock is expected to pay $1.35 per share next year when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 3 percent annually and expects to continue doing so. What is the market rate of return on this stock? 20.14 percent 7.79 percent 7.42 percent 19.67 percent OC OD A. B C₁ D Ο Α OB
QUESTION 17 A company has preferred stock that pays a constant $2.8 per share dividend. If the stock's required return is 8.9%, how much should you be willing to pay for a share of the stock? Round your final answer to two decimal places (don't round intermediate calculations). Click Save and Submit to save and submit. Click Save All Answers to save all answers.
17 ts 03:39:08 E-Eyes.com just issued some new 20/20 preferred stock. The issue will pay an annual dividend of $28 in perpetuity, beginning 17 years from now. If the market requires a return of 4.2 percent on this investment, how much does a share of preferred stock cost today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock price
Ch. 9. The next dividend payment by Skippy Jon Jon, Inc., will be $1.08 per share. The dividends are anticipated to maintain a growth rate of 4 percent, forever. The stock currently sells for $24 per share. What is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Format as a percentage as "X.X"
9:37 1 What is the dividend yield on Stock A that sells at $15/share, when Company A pays a quarterly dividend of $0.10 per share? dividend yield =[?]% Give your answer as a percent rounded to the nearest tenth. Hint: Dividend Yield annual dividend share price Enter Done W e r y u ор d f ghj k a S C V n m 123 space return N Help Resources
q6- You are using Bloomberg to look up financial information for Delta Ltd. You determine that the share price is currently $13.80 and that the value of dividends paid over the past year was $1.41. You paid $8.47 for the share exactly one year ago. What would you expect the dividend yield to be according to Bloomberg? a. 62.93% b. 10.22% c. 79.57% d. 16.65%
Problem 9-18 Finding the Dividend Matterhorn Corporation stock currently sells for $80 per share. The market requires a return of 9.8 percent on the firm’s stock. If the company maintains a constant 2.9 percent growth rate in dividends, what was the most recent dividend per share paid on the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Chapter 7: a. What is the current value of the company's stock? D₁ Ts 90,5 GL 9 Year Dividend Valuation of Stocks and Corporations PV of dividends and PV of horizon value V 1 $0.60 9.5% 4% Short-run g; during the first five years from 2005 to 2009. Long-run g; stardning from 2010 and all following years. 8% 0 $0.00 = Po 4% 1 $0.60 4% 2 4% I 3 4% 4 4% 5 8% 6 = Horizon value P51 = = D5 (1+gL) = D6 =rs - gL
33 Mannix Corporation stock currently sells for $70 per share. The market requires a return of 12 percent on the firm's stock. If the company maintains a constant 8 percent growth rate in dividends, what was the most recent dividend per share paid on the stock? E Multiple Choice O O O $2.49 $2.59 $4.70 $14.08 R 5
Problem 7-21 Constant-Growth Model (LO2) Here are data on two stocks, both of which have discount rates of 14%: Return on equity Earnings per share Stock A 14% $ 1.50 Stock B 10% $ 1.40 Dividends per share $ 1.20 $ 1.20 a. What is the dividend payout ratio for each firm? Note: Enter your answers as a percent rounded to 2 decimal places. Stock A Stock B Dividend payout ratios 80.00 % 85.71 % b. What is the expected dividend growth rate for each stock? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Stock A Stock B Expected dividend growth rates % % c. What is the value of each stock? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Stock A Stock B Stock price

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS