Tuesday, November 12, 2019

Dexter Metals, paid its first annual dividend yesterday in the amount of $0.18 a share.

Dexter Metals, paid its first annual dividend yesterday in the amount of $0.18 a share. The company plans to double each annual dividend payment for the next 3 years. After that time, it plans to pay $1.25 a share for 2 years than then pay a constant dividend of $1.60 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 10.24 percent? 
 
A. 
$12.32

B. 
$12.77

C. 
$13.20

D. 
$14.26

E. 
$14.79


 

89.
Marshall Arts Studios just paid an annual dividend of $1.36 a share. The firm plans to pay annual dividends of $1.50, $1.55, and $1.58 over the next 3 years, respectively. After that time, the dividends will be held constant at $1.70 per share. What is this stock worth today at a 9 percent discount rate? 
 
A. 
$14.08

B. 
$14.30

C. 
$16.67

D. 
$16.79

E. 
$18.49


 

90.
Home Care Providers is paying an annual dividend of $1.10 every other year. The last dividend was paid two years ago. The firm will continue this policy until 3 more dividend payments have been paid. One year after the last dividend normal payment, the company plans to pay a final liquidating dividend of $40 per share. What is the current market value of this stock if the required return is 17 percent? 
 
A. 
$18.92

B. 
$20.74

C. 
$23.16

D. 
$24.14

E. 
$24.53

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