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: Zin 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

Determine which of these sets spans R^3 q) (1,0,1) , (3,1,0), (-1,0,0),(2,1,5) x) (2,1,2) , (1,1,1), (-3,0,-3) y)...

Basic Math
Q

Solar energy is an alternative to fossil fuels for providing electrical power for both homes and...

Physics
Q

Select a multinational FMCG company and evaluate it on the following Supply Chain Management criteria’s: Inventory Replenishment...

General Management
Q

A population numbers 13,000 organisms initially and decreases by 6% each year.Suppose P represents population,...

Geometry
Q

y courses SC MATH1507 M N O P Q R S Mathematics II for the...

Basic Math
Q

Use the following matrix A 3 4 d 2 C 5 5b a 2 and...

Algebra
Q

Show that the function f x y 2xy is differentiable at the point 1 2

Algebra
Q

1 Sold inventory on account to Patina: Inventory Item Sales Price per item Quantity Sold...

Accounting
Q

In the first month of operations, Mordica Company made three purchases of merchandise in the...

Accounting
Q

Proceeds from Notes Payable On October 12, Belleville Co. borrowed cash from Texas Bank by...

Accounting
Q

Your company makes BBQ's from scratch - that is to say, you currently make all...

Accounting
Q

7-23. Assigning Costs to Jobs Sunset Products manufactures skateboards. The following transactions occurred in March....

Accounting