Suppose you want to buy a stock, which will pay $1 dividend in next year, the price
Question:
Suppose you want to buy a stock, which will pay $1 dividend in next year, the price of this stock will be $55 in next year. How much are you willing to pay for this stock today, if your required rate for investment is 14%?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 33% (3 reviews)
To determine how much you are willing to pay for a stock today given that it will pay a 1 dividend n...View the full answer
Answered By
Brown Arianne
Detail-oriented professional tutor with a solid 10 years of experience instilling confidence in high school and college students. Dedicated to empowering all students with constructive feedback and practical test-taking strategies. Effective educator and team player whether working in a school, university, or private provider setting. Active listener committed to helping students overcome academic challenges to reach personal goals.
4.60+
2+ Reviews
10+ Question Solved
Related Book For
Financial Markets And Institutions
ISBN: 9781292215006
9th Global Edition
Authors: Stanley Eakins Frederic Mishkin
Question Posted:
Students also viewed these Business questions
-
Suppose you want to buy a house that costs P1,000,000. You give a downpayment of P200,000, and then you loan the remaining P800,000 from a bank. Your agreement with the bank is that you will pay for...
-
LLLis a company that sells modern equipment. To purchase a new equipment for your company from LLL, you as a financial manager have narrowed down two equipment models which meet your performance...
-
Please help me Object and Instance Before attempting this assignment, be sure you have completed all the reading assignments, non- graded exercises, discussions, and assignments to date. Overview...
-
In Exercises 7681, find the domain of each function. g(x) = 4 x - 7
-
What is cost-plus pricing? Why do so many manufacturers use it? What are the disadvantages of using it?
-
1. Indicate which of the following will produce a magnetic field: (a) A magnet. (b) The Earth. (c) An electric charge at rest. (d) A moving electric charge. (e) An electric current. (f) The voltage...
-
P(0.18 < z < 2.46) Find the indicated probability using the standard normal distribution. If convenient, use technology to find the probability.
-
As an analyst at Churnem&Burnem Securities, you are responsible for making recommendations to your firm's clients regarding common stocks. After gathering data on Denver Semiconductors, you have...
-
Blossom Manufacturing purchases $73,100 of raw materials on account, and it incurs $81,200 of direct labour costs. Supporting records show that (a) the assembly department used $63,300 of direct...
-
Why would economic growth affect the value of a stock?
-
Why might leaders who need to develop greater emotional intelligence be less capable of identifying such a need?
-
Weston Corporation manufactures auto parts for two leading Japanese automakers. Nancy Evans is the management accountant for one of Westons largest manufacturing plants. The plants general manager,...
-
KLM Company issued $ 3 million of 9 . 7 5 % $ 8 0 par preferred shares in 2 0 0 1 . Calculate the total amount of dividends paid on this issue per year and the annual amount of the dividends per...
-
The task for this question is to write and test a function that converts a distance in miles to a distance in kilometres. The relationship between the two values is given by: Dkm = 1.60934 Dm where...
-
As a 1st-year accounting student, you have been introduced to various costing methods used by companies to allocate expenses and analyze their cost structures. One of these methods is Activity-Based...
-
How to calculate .539 grams/cm^3 into density (kg/m^3)?
-
The adjusted trial balance for Happ Company follows. Adjusted Trial Balance December 31 Number 101 Account Title Cash 106 Accounts receivable 153 Trucks 154 183 Land 201 209 233 307 Common stock 318...
-
A 50-question truefalse examination is given. Each correct answer is worth 10 points. Consider an unprepared student who randomly guesses on each question. a. If no points are deducted for incorrect...
-
For the following exercises, write the polynomial function that models the given situation. Consider the same rectangle of the preceding problem. Squares of 2x by 2x units are cut out of each corner....
-
Using the leverage-ratio requirement, what is the banks minimum regulatory capital requirement to keep it in the adequately capitalized zone?
-
Does the bank have enough capital to meet the Basel requirements, including the capital conservation buffer requirement?
-
How do the balance sheets of savings institutions differ from those of commercial banks? How do their sizes compare?
-
In a recent year, person A and person B had two concert tours, and together they generated $192.1 million in ticket sales. If person B took in $22.7 million less than person A, how many millions of...
-
Volata Company began operations on January 1, 2023. In the second quarter of 2024, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company's interim...
-
watch the short video on YouTube titled "The Best Marketing Advice EVER By Steve Jobs | Apple Motivation & Inspiration" 1) Write a summery of the video. what is the moral of this video? 2) what...
Study smarter with the SolutionInn App