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

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

60.1K

Verified Solution

Question

Finance

8) Last week, Onboard Co. has announced that the next two annualdividends will be in the amount of $2.28 and $4.21, respectively.After that, the dividends will increase by 2.93 percent annually.The required return on this stock is 10.35 percent. What is thecurrent price per share? (Hint: draw this out on a timeline.)

Answer & Explanation Solved by verified expert
4.5 Ratings (704 Votes)
Step1 Dividend for the next 2 years Dividend in Year 1 D1 228 per share Dividend in Year 2 D2 421 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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

8) Last week, Onboard Co. has announced that the next two annualdividends will be in the amount of $2.28 and $4.21, respectively.After that, the dividends will increase by 2.93 percent annually.The required return on this stock is 10.35 percent. What is thecurrent price per share? (Hint: draw this out on a timeline.)

Other questions asked by students

Q

2 Graphical Analysis K The National Education Association collects data teachers A sample taken this...

Statistics
Q

9. Zebra Medicine is an online pharmaceutical firm. Zebra has asmall systems staff that...

Accounting
Q

brief summary of NPPV

Medical Sciences
Q

separte by a distance of 1 mm are illuminated with red light of wavelength 6...

Physics
Q

In an effort to cut costs and improve profits any US companies have been turning...

Statistics
Q

Turner Hardware is adding a new product line that will require an investment...

Accounting
Q

some of the answers are incorrect and i am trying to get the correct answers...

Accounting
Q

7) On June 1,2019, Starbucks paid the rent of $66,000 for 40 of its stores...

Accounting
Q

post the closing entries to income summary and retained earnings The...

Accounting
Q

Logistics Solutions mainteins warehouses that stock items carried by its dot.com clients. When a...

Accounting
Q

The primary objective of financial accounting is to ...

Accounting
Q

Liza's budgets sales of $44,000 for May and $52,000 for June. Assume 60% of Lizas...

Accounting