A stock will not pay dividends until three years from now. the dividend then will be $2

Fantastic news! We've Found the answer you've been seeking!

Question:

A stock will not pay dividends until three years from now. the dividend then will be $2 per share, the dividend payout ratio will be 40%, and return on equity will be 15%. If the required rate of return is 12%, what is the value of the stock?

Related Book For answer-question

Financial Accounting Information For Decisions

ISBN: 978-0324672701

6th Edition

Authors: Robert w Ingram, Thomas L Albright

See More Books

Posted Date: Feb 02, 2022 04:37 AM

See More Questions

If the firms required rate of return is 12 percent, what is the MIRR for the following project? Year Cash Flow 0 .......... $(105,000) 1 .......... 70,000 2 .......... 50,000
Return on assets and return on equity are measures of performance. What is the difference between the two measures? Be specific.
If the firms required rate of return is 14 percent, what is the net present value of the following project? Year Cash Flow 0 .......... $(75,000) 1 .......... 50,000 2 .......... 40,000
How does the organization's mission, vision, values, and strategies shapes the organizational culture and develop culture for change?
You want to estimate the proportion of gas stations in the state that have stopped accepting cash. You take a simple random sample of 150 stations. Twelve stations in the sample indicate that they...
The following amortization schedule is for Flagg Ltd.'s investment in Spangler Corp.s $100,000, five-year bonds with a 7% interest rate and a 5% yield, which were purchased on December 31, 2013, for...
Acetone is evaporating in a mixture of nitrogen and helium. Find the rate of evaporation and compare it with the rates in pure nitrogen and pure helium. Also compare it with the model using a...
The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Management is concerned about the...
If Jamaal earns $28.90 per hour, estimate how much he would earn per year. Assume that he works 40 hours per week and 50 weeks per year. Give your answer in whole dollars (no cents). Jamaal's...
Trace or copy the graph of the given function f. (Assume that the axes have equal scales.) Then use the method of Example 1 to sketch the graph of f' below it. yA
Crisis communication and reputation management are important parts of public relations practice. The text discusses Coombs' crisis communication strategies and Benoit's image restoration strategies....
The forces in Figure P5.10 are acting on a $2.0 \mathrm{~kg}$ object. What is $a_{x}$, the $x$-component of the object's acceleration? 4.0 N 2.0 N 3.0 N FIGURE P5.10 13.0 N
A rocket is being launched straight up. Air resistance is not negligible. Describe a situation. For each problem, draw a motion diagram, a force identification diagram, and a free body diagram.
Consider the following cash flow profile: What is the present worth equivalent for the cash flow series with an interest rate of 12 percent? EOY Cash Flow EOY Cash Flow EOY Cash Flow 0 -$50,000 3...
Suppose Humphrey and Matilda live together. Humphrey currently smokes 20 packs of cigarettes per month; Matilda hates the smoke. They currently have no agreement restricting smoking. Their only joint...
Go to https://hbr.org/2003/02/why-bad-projects-are-sohard- to-kill and read the perspective on the difficulty in killing bad projects. What are some of the critical stories or pieces of advice...
The consumer price index for Planet Econ consists of only two items: books and hamburgers. In 2000, the base year, the typical consumer purchased 10 books for $25 each and 25 hamburgers for $2 each....
On October 1, 2014, the Dow Jones Industrial Average (DJIA) opened at 17,042 points. During that day it lost 237 points. On October 2 it lost 4 points. On October 3 it gained 209 points. Deter-mine...
Lily Pewshun negotiated a three-year, 9%, $46,000 loan from her bank. It called for three equal-sized year-end payments. a. Determine the amount of her payment each year (round to the nearest...
Following is a set of pro forma (or projected) income statements for a company. The columns labeled A are projected results for the company if it follows Strategy A. The columns labeled B are...
Wilma Borrelli is a stockholder of Essex International, a major supplier of building materials. Wilma received information that Essex sustained a large loss during the most recent quarter and is...
Mosca and Vespa are two sole traders with the financial statements (in euros) for the year ending 31 December as set out in Figure 7.10. Using the information contained in the financial statements,...
The following information has been extracted from the recently published statements of company D, as set out in Figure 7.11. Figure 7.11 Financial statements for company D as at 30 April The ratios...
Which of the following costs related to a building is NOT usually treated as an expense but is added to the asset? A. Repairs. B. Redecoration. C. Fitting new safety equipment. D. Cleaning.

A stock will not pay dividends until three years from now. the dividend then will be $2

Question:

Expert Answer:

Growth rateROE1payout ratio 015104 9 Value after year 3D... View the full answer

Financial Accounting Information For Decisions

Students also viewed these accounting questions