You have just purchased a share of stock for $19.05. The company is expected to pay a
Question:
You have just purchased a share of stock for $19.05. The company is expected to pay a dividend of $0.63 per share in exactly one year. If you want to earn a 9.2% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Heres how to calculate the required selling price to achieve a 92 return on your inv...View the full answer
Answered By
Nimlord Kingori
2023 is my 7th year in academic writing, I have grown to be that tutor who will help raise your grade and better your GPA. At a fraction of the cost on other sites, I will work on your assignment by taking it as mine. I give it all the attention it deserves and ensures you get the grade that I promise. I am well versed in business-related subjects, information technology, Nursing, history, poetry, and statistics. Some software's that I have access to are SPSS and NVIVO. I kindly encourage you to try me; I may be all that you have been seeking, thank you.
4.90+
360+ Reviews
1070+ Question Solved
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Question Posted:
Students also viewed these Business questions
-
Discuss the National Health Act, 2003 (South Africa) in detail. Give the citing case example of the law and discuss what flaws are there in the law and what changes are needed to make the law strong....
-
You have just purchased a share of stock for $21.66. The company is expected to pay a dividend of $ 0.66 per share in exactly one year. If you want to earn a 9.30% return on your investment, what...
-
You have just purchased a share of stock for $20. The company is expected to pay a dividend of $0.50 per share in exactly one year. If you want to earn a 10% return on your investment, what price do...
-
What are fintech risks?
-
Choose from one of the three new emerging technologies, and do your research about it ( search especially about related research papers). Define, analyze, give examples, benefits, drawbacks,...
-
Use the graphs of the rational functions in choices AD to answer each question. There may be more than one correct choice. Which choices have range (-, 3) (3, )? B. A. C. D. 3. 3. 3.
-
Suppose the economys labor market is competitive and that labor demand can be written as w = 50 0.3E while labor supply can be written as w = 8 + 0.2E where E is the total amount of employment in...
-
Regal Polish manufactures a single product in one department and uses a process costing system. At the start of May, there were 10,000 units in process that were 100 percent complete with respect to...
-
Assume Major Link Inc. purchased a new piece of equipment on January 1, 2020, that cost $25,000. The estimated useful life is five years, and estimated residual value is $2,500. If Major Link uses...
-
You expect KStreet Cos trade at $98 per share right after paying a $2.25 dividend per share in one year. What is the most you would pay to buy the stock now if you want to earn at least a 12% return?
-
Your portfolio consists of 120 shares of CSH and 60 shares of EJH, which you just bought at $21 and $29 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If...
-
Renter Co. acquired the use of a machine by agreeing to pay the manufacturer of the machine $900 per year for 10 years. At the time the lease was signed, the interest rate for a 10-year loan was 12%....
-
The Jetsons are taking a family vacation. Their car gets 30 miles per gallon in gas mileage. They are traveling for seven hours at a rate of 55 miles per hour. Assuming no stops, how much gas will...
-
Shares of Walmart are trading at $95 per share. A put option with strike price of $100 is currently selling for $2. What is the intrinsic value of the put option?
-
Douglas Ltd plans to manufacture and sell lanterns during the month of September 2021. From the following information calculate the breakeven point in units: Fixed costs $21,000 Variable costs $6 per...
-
JK Capital Markets sold a 5% interest rate floor with a face value of 10 millions for1.5% of face value. If at expiration date interest rates are 3.8%, How much is the profit/(loss) of JK Capital...
-
Raven purchases a new cell phone for $800 that depreciates annually. The value of her cell phone per year, x, can be modeled by the exponential function f(x) = 800(0.82)x. What is the range of this...
-
What do advocates claim about the influence of spirituality on the performance of employees?
-
Vectors are drawn from the center of a regular n-sided polygon in the plane to the vertices of the polygon. Show that the sum of the vectors is zero.
-
Systematic versus Unsystematic Risk Classify the following events as mostly systematic or mostly unsystematic. Is the distinction clear in every case? a. Short-term interest rates increase...
-
Systematic versus Unsystematic Risk Indicate whether the following events might cause stocks in general to change price, and whether they might cause Big Widget Corp.s stock to change price: a. The...
-
Systematic versus Unsystematic Risk Indicate whether the following events might cause stocks in general to change price, and whether they might cause Big Widget Corp.s stock to change price: a. The...
-
The space age bicycle rim in Figure 4.88 can be modeled as a thin disk with four circular cutouts, which are of identi- cal size. The density of the disk material is kg/m2 . In Figure 4.88, the rim...
-
Sirius has a luminosity about 23 times that of our Sun, and a radius about 1.8 times that of our Sun. Estimate the temperature of Sirius.
-
Consider a skier heading down a 11 slope. Assume the coefficient of friction for waxed wood on wet snow is k = 0.10 and use a coordinate system in which down the slope is positive. a. Calculate the...
Study smarter with the SolutionInn App