Calculate the fair present value on a stock that pays $5 in dividends per year (with no
Question:
Calculate the fair present value on a stock that pays $5 in dividends per year (with no growth) and has a required rate of return of 10 percent.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 46% (13 reviews)
The fair present value 5 010 50 The required rate of return is the per...View the full answer
Answered By
James Warinda
Hi! I’m James Otieno and I'm an experienced professional online tutor with countless hours of success in tutoring many subjects in different disciplines. Specifically, I have handled general management and general business as a tutor in Chegg, Help in Homework and Trans tutor accounts.
I believe that my experience has made me the perfect tutor for students of all ages, so I'm confident I can help you too with finding the solution to your problems. In addition, my approach is compatible with most educational methods and philosophies which means it will be easy for you to find a way in which we can work on things together. In addition, my long experience in the educational field has allowed me to develop a unique approach that is both productive and enjoyable.
I have tutored in course hero for quite some time and was among the top tutors awarded having high helpful rates and reviews. In addition, I have also been lucky enough to be nominated a finalist for the 2nd annual course hero award and the best tutor of the month in may 2022.
I will make sure that any student of yours will have an amazing time at learning with me, because I really care about helping people achieve their goals so if you don't have any worries or concerns whatsoever you should place your trust on me and let me help you get every single thing that you're looking for and more.
In my experience, I have observed that students tend to reach their potential in academics very easily when they are tutored by someone who is extremely dedicated to their academic career not just as a businessman but as a human being in general.
I have successfully tutored many students from different grades and from all sorts of backgrounds, so I'm confident I can help anyone find the solution to their problems and achieve
0.00
0 Reviews
10+ Question Solved
Related Book For
Financial Markets And Institutions
ISBN: 9781264098729
8th Edition
Authors: Anthony Saunders, Marcia Cornett
Question Posted:
Students also viewed these Business questions
-
A company has a minimum required rate of return of 9 %. It is considering investing in a project that costs $ 222000 and is expected to generate cash inflows of $ 89000 at the end of each year for...
-
A day trader buys an option on a stock that will return $100 profit if the stock goes up today and lose $400 if it goes down. If the trader thinks there is a 75% chance that the stock will go up, a)...
-
Calculate the fair present value of the following bonds, all of which have a 10 percent coupon rate (paid semiannually), face value of $ 1,000, and a required rate of return of 8 percent. a. The bond...
-
This short exercise demonstrates the similarity and the difference between two ways to acquire plant assets. i (Click the icon to view the cases.) Compare the balances in all the accounts after...
-
Using the information given in E4- 1, prepare the journal entry for each transaction for Miller Manufacturing. E4-1 a. Bought office equipment with cash, $ 30,000. b. Bought supplies on credit from a...
-
Cairo Corporation has government bonds classified as held-for-collection at December 31, 2022. These bonds have a par value of $800,000, an amortized cost of $800,000, and a fair value of $740,000....
-
Almetals, Inc., a Michigan company, entered into a contract with the German firm Wickeder Westfalenstahl regarding the purchase of clad metal, a specialty metal used in a variety of industries but...
-
On October 29, 2012, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any...
-
Change Janets Schedule In Question 5 Above, You Calculated What The Schedule Would Look Like If Janet Had Made One $285.05 Payment In January 2022. You Did It By Hand, But The Bankrate Calculator Has...
-
PM Computers is an international manufacturer of computer equipment and software. It is going to introduce a number of new products in the coming year, and it wants to develop marketing programs to...
-
A stock you are evaluating is expected to experience supernormal growth in dividends of 8 percent over the next six years. Following this period, dividends are expected to grow at a constant rate of...
-
What is the difference between a zero-coupon bond and a coupon bond?
-
How might management analyze sales territory profitability?
-
Define what you believe leadership to be in any criminal justice organization. Explain how your definitions could best be applied to improve your own criminal justice organization or any others you...
-
Lime Corp. disposed of its Recreation Division in November of 2020 at a loss of $18,000 before tax. Prior to the sale, the Recreation Division (considered a separate business component) reported an...
-
Define 'environmentally aware organization' and then concisely list and explain the most essential leadership behavior a CEO must have to promote a strategically environmentally aware organization;...
-
What are the social ramifications of industrialization, including shifts in labor relations, class dynamics, and the emergence of new social stratifications?
-
f(x) = x(x) + (1 x)f(x) = x + 2
-
A shopping center sample was used to evaluate a new product. Given the data in Table 14-6, what is your estimate of the proportion of people who say they will buy the product? Table 14-6 Proportion...
-
If you want to solve a minimization problem by applying the geometric method to the dual problem, how many variables and problem constraints must be in the original problem?
-
Who are the major regulators of the stock markets?
-
Which countries or regions of the world have the largest stock markets?
-
What is an ADR? How is an ADR created?
-
Write a program named PointToPointDistance that reads in the x- and y- coordinates of two points and prints their distance from each other. There are no prompts or output labels. So, if the input was...
-
Let P(x | C;) ~ N(;, ) for a two-category, one-dimensional classification problem with classes C1 and C2, P(C) = P(C2) = 1/2, and > . (a) Find the Bayes optimal decision boundary and the...
-
Suppose we write the following code (pseudo-code) on our shell terminal: int main(int argc, char *argv[]) { int p fork(); for (int i=0; i
Study smarter with the SolutionInn App