Stock dividends problems | Business & Finance homework help


10.00 points

Antiques R Us is a mature manufacturing firm. The company just paid a $15 dividend, but management expects to reduce the payout by 9 percent per year indefinitely.


Required :

If you require an 20 percent return on this stock, what will you pay for a share today?














10.00 points

Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.30 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company’s stock is 8.10 percent, 11.90 percent, and 15.10 percent, respectively.


(a)               What is the stock price for Red. Inc., Company?

(b)              What is the stock price for Yellow Corp. Company?

(c)               What is the stock price for Blue Company?




10.00 points

Marcel Co. is growing quickly. Dividends are expected to grow at a 20 percent rate for the next 3 years, with the growth rate falling off to a constant 5 percent thereafter.



If the required return is 12 percent and the company just paid a $3.40 dividend. what is the current share price? (Do not round your intermediate calculations.)









10.00 points

Far Side Corporation is expected to pay the following dividends over the next four years: $13, $11, $6, and $3. Afterward, the company pledges to maintain a constant 3 percent growth rate in dividends forever.



If the required return on the stock is 13 percent, what is the current share price? (Do not round your intermediate calculations.)









10.00 points

Teder Corporation stock currently sells for $115 per share. The market requires a 9 percent return on the firm’s stock.


Required :

If the company maintains a constant 5 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?









10.00 points

Thirsty Cactus Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 35 percent for the next 9 years and then level off to a 7 percent growth rate indefinitely.


Required :

If the required return is 14 percent, what is the price of the stock today?









10.00 points

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 14 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $6 per share dividend in 15 years and will increase the dividend by 3 percent per year thereafter.



If the required return on this stock is 8 percent, what is the current share price? (Do not round your intermediate calculations.)









10.00 points

Suppose you know a company’s stock currently sells for $60 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield.



If it’s the company’s policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?









10.00 points

Apocalyptica Corp. pays a constant $13 dividend on its stock. The company will maintain this dividend for the next 13 years and will then cease paying dividends forever.



If the required return on this stock is 8 percent, what is the current share price?









10.00 points Bank just issued some new preferred stock. The issue will pay a $10 annual dividend in perpetuity, beginning 5 years from now.


Required :

If the market requires a 7 percent return on this investment, how much does a share of preferred stock cost today?









10.00 points

The next dividend payment by Hot Wings, Inc., will be $4.95 per share. The dividends are anticipated to maintain a 5 percent growth rate forever.



If the stock currently sells for $58 per share, what is the required return?









Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.