Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. last week, onboard co. has announced that the next

Last week, Onboard Co. has announced that the next two annual dividends will be in the...

50.1K

Verified Solution

Question

Finance

Last week, Onboard Co. has announced that the next two annualdividends will be in the amount of $2.13 and $3.74, respectively.After that, the dividends will increase by 2.01 percent annually.The required return on this stock is 11.38 percent. What is thecurrent price per share? (Hint: draw this out on a timeline.)

Answer & Explanation Solved by verified expert
4.5 Ratings (858 Votes)
Step1 Dividend for the next 2 years Dividend in Year 1 D1 201 per share Dividend in Year 2 D2 374 per share Step2 The Price of the stock in year 2 P2 Dividend Growth Rate    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Last week, Onboard Co. has announced that the next two annualdividends will be in the amount of $2.13 and $3.74, respectively.After that, the dividends will increase by 2.01 percent annually.The required return on this stock is 11.38 percent. What is thecurrent price per share? (Hint: draw this out on a timeline.)

Other questions asked by students

Q

One mole of an ideal monoatomic gas goes through a cyclic process shown in the...

Physics
Q

O statistical bias undercoverage O placebo effect Oresponse bias QUESTION 2 What term describes the...

Basic Math
Q

Determine if the equation is a linear equation in the variables x y and z...

Basic Math
Q

Related Rates One Formula Jan 05 5 50 20 PM The height of a cylinder...

Calculus
Q

The ______ approach is typically the best approach when preparing a master budget. bottom up...

Accounting
Q

Problem 5. (20points) An electronics company is trying to determine to which new...

Accounting
Q

Waterways is considering mass-producing one of its special-order screens. This would increase variable costs for...

Accounting
Q

If you see a client with a companion in a bookstore you should:

Accounting
Q

Sharon Inc. is headquartered in State X and owns 100 percent of Carol, Josey, and...

Accounting
Q

5 The management team of Nash Industries was evaluating its...

Accounting
Q

Simon has operated a carpet cleaning business for several years. On 1 May 2021 he...

Finance
Q

You are expecting to receive $300 at the end of each year in years 3,...

Finance