Xytex Products just paid a dividend of $1.72 per share, and the stock currently sells for $42. If the discount rate is 11 percent, what is the dividend growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Growth rate %
Xytex Products just paid a dividend of $1.72 per share, and the stock currently sells for $42. If the discount rate is 11 percent, what is the dividend growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Growth rate %
Related questions
| Suppose Powers Ltd. just issued a dividend of $2.63 per share on its common stock. The company paid dividends of $2.13, $2.20, $2.37, and $2.47 per share in the last four years. |
| Required: |
| What was the dividend growth rate for each year? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| Growth rate | |
| Year 1 | % |
| Year 2 | % |
| Year 3 | % |
| Year 4 | % |
| What were the arithmetic and geometric dividend growth rates over the past four years? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| Cost of equity | |
| Arithmetic dividend growth rate | % |
| Geometric dividend growth rate | % |
| If the stock currently sells for $82, what is your best estimate of the companyâs cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| Cost of equity | |
| Arithmetic dividend growth rate | % |
| Geometric dividend growth rate | % |
Suppose Hornsby Ltd. just issued a dividend of $2.47 per share on its common stock. The company paid dividends of $1.97, $2.04, $2.21, and $2.31 per share in the last four years.
If the stock currently sells for $66, what is your best estimate of the companyâs cost of equity capital using arithmetic and geometric growth rates? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
| Cost of equity | |
| Arithmetic dividend growth rate | % |
| Geometric dividend growth rate | % |
