Extracted text: Bella Bearings, Inc., is a young start-up company. No dividends will be paid on the sto... Metallica Bearings, Incorporated, is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $14 per share 10 years from today and will increase the dividend by 3.9 percent per year thereafter. If the required return on this stock iS TI.5 porcent what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Bella Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to retain its earnings to fuel growth. The company will pay a dividend of $17 per share 10 years from today and will increase the dividend by 3.9 percent per year thereafter. If the required return on this stock is 12.5 percent, what is the current share price? Cerent share price Business / Finance / Q&A Library / Bella Bearings, Inc., is a young start-up company. No dividends will be paid on th... Bella Bearings, Inc., is a young start-up company. No dividends will be paid on the sto... Value after 10 years can be calculated as follows: Dx(1+growth rate) Required rate - growth rate Value after 10 years $17x1.039 .125 -.039 = $205.3837 Present value of future dividend and value will be as follows: $17 $205.3837 (1.125)" Current price = 10 (1.125)" = 5.2351+632475 = $68.48 < prev="" 4="" of="" 9="">
Hence, the current share price is $71.40. "/>
Extracted text: McCabe Corporation is expected to pay the following dividends over the next four years: $15, $11, $9, and $2.95. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 10.3 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Lohn Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $6.50. Afterward, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 16 percent, what is the current share price? Current share price Answer is complete but not entirely correct. b Answered: Lohn Corporation is e X bartleby.com/questions-and-answers/lohn-corporation-is-expected-to-p E bartleby Q Search for textbooks, step-by-step explanations to home... usiness / Finance / Q&A Library / Lohn Corporation is expected to pay the following dividends over the next four y ohn Corporation is expected to pay the following dividends over the next four years Step 2 The computations as follows: Dra (1+r) = (1+r)' r-G D- -T P => $16 $12 $1 $6.50 + (1+16%) (1+16%) $6.50 (1+6%) + 7(1+16%) (16%-6%)" = $71.40 < prev="" 6="" of="" 9="" next=""> Hence, the current share price is $71.40.