Mr. Mendoza

7.2 ) Boehm Incorpo treasured is expected to pay a $1.50 per portion out divid force out at the end of the grade.? The dividend is expected to grow at a uninterrupted rate of 7% a year. The required rate of clear on the course is 15%. What is the value per share of the companys banal? (1.50 X 1) + the 7% growth rate and relieve oneself 1.5 (1.07) = 1.605 (1.50)(1.07) /(.15 - .07) = 1.605 / .08 = 20.0625 or $20.63 7-4). Nicks Enchiladas Incorporated has favorite(a) stock owing(p) that pays a dividend of $5? Nicks Enchiladas Incorporated has favored stock outstanding that pays a dividend of $5 at the end of each(prenominal) year. The preferred sells for $50 a share. What is the stocks required rate of return? $5/$50 = 10% 7.5). A company contemporaryly pays a dividend of $2 per share.

It is estimated that the companys dividend will grow at a rate of 20% per year for the next 2 years, then at a uninterrupted rate of 7% thereafter. The companys stock has a beta of 1.2, the chance fre rate is 7.5%, and the grocery store risk is 4%. What is your estimate of the stocks current price. 9-2 9-4) Burnwood Tech plans to get along some $60 par preferred stock with a 6% dividend. The stock is selling on the food market for $70 and Burnwood must pay flotation be of 5% of the market price. What is the cost of the preferred stock? = = 5.41%If you command to get a full essay, order it on our website: OrderCustomPaper.com

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