help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Mannix Corporation stock currently sells for $80 per share

Mannix Corporation stock currently sells for $80 per share

Finance

Mannix Corporation stock currently sells for $80 per share. The market requires a return 12% on the firm's stock. 
If the company maintains a constant 5 percent growth rate in dividends, what was the most recent dividend per share paid on the stock.
 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Computation of the recent dividend (D0):-

Current stock price = D0*(1+Growth rate) / (Required return - Growth rate)

$80 = D0(1+5%) / (12% - 5%)

D0*(1+5%) = $80 * 7%

D0 = $5.60 / (1+5%)

= $5.33

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)