Ex1: Suppose the stock pay a $ 0.50 dividend per share, and expected to increase its...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Ex1: Suppose the stock pay a $ 0.50 dividend per share, and expected to increase its dividend by 2% per year, and the required rate of return is 15%, how much should the stock selling for? Ex2: Suppose the stock is expected to pay a $2 dividend in one year, if dividend is expect to grow at 5% per year, and the required rate of return is 20%, how much should the stock selling for? Ex1: Suppose the stock pay a $ 0.50 dividend per share, and expected to increase its dividend by 2% per year, and the required rate of return is 15%, how much should the stock selling for? Ex2: Suppose the stock is expected to pay a $2 dividend in one year, if dividend is expect to grow at 5% per year, and the required rate of return is 20%, how much should the stock selling for?
Expert Answer:
Answer rating: 100% (QA)
Current price of stock D 1 K e g 1 Current price of stock as per ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
A mortgage lender attempted to increase its business by marketing its subprime mortgage. This mortgage is designed for people with a less-than-perfect credit rating, and the interest rate is higher...
-
How does a firms required rate of return on investment enter into the analysis of changes in its credit and collection policies?
-
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
-
When dealing with a recession, governments may... a) increase spending b) raise taxes c) increase regulations d) decrease spending
-
Using the following data, calculate Pace Companys accounts receivable turnover. Accounts receivable balance, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000 Inventory...
-
In a uniform electric field of magnitude E, the field lines cross through a rectangle of area A at an angle of 60.0 with respect to the plane of the rectangle. What is the flux through the rectangle?
-
J Owens year ended on 30 June 19X8. Write up the ledger accounts, showing the transfers to the final accounts and the balances carried down to the next year for the following: (a) Stationery: Paid...
-
The Budgetary Comparison Schedule for the City of Salem appears in Illustration 216. Assume the general and subsidiary ledgers for the General Fund were lost after a water pipe burst. You are charged...
-
the following documents and records and their use in the sales and collection cycle: bill of lading, credit memo, remittance advice, and accounts receivable trial balance I need assistance with...
-
Aaron Lakely is going to the grocery store to buy some bananas and apples, both of which are sold by the pound. He wants a program that calculates and displays the total cost of his order, including...
-
What is Spread Spectrum? Explain the modulation schemes employed in the IEEE 802.11 standards, such as DSSS, FHSS. Compare their advantages and limitations. 1 answer
-
What are human resource management (HRM) programs intended to do for the organization?
-
What is the purpose of training and what are the major steps in training?
-
What is selection? Also, what is meant by a performance test?
-
Define recruitment and the two major sources for recruiting.
-
Discuss the three general roles of management. What are the purposes of these roles? What specific roles fall under each general role?
-
In the past, there were 20 times more children than older people. Currently, there are 3 times as many children as there are elders. These changes in the age make-up of the population are referred to...
-
The roof of a refrigerated truck compartment is of composite construction, consisting of a layer of foamed urethane insulation (t2 = 50 mm, ki = 0.026 W/m K sandwiched between aluminum alloy panels...
-
Coastal Packagings ROE last year was only 3 percent, but its management has developed a new operating plan designed to improve things. The new plan calls for a total debt ratio of 60 percent, which...
-
What would happen to the standard of living in the United States if people lost faith in our financial markets? Why?
-
Suppose Reading Engine Company, which has a high beta as well as a great deal of corporate risk, merged with Simplicity Patterns Inc. Simplicitys sales rise during recessions, when people are more...
-
Write the schemes similar to (4.17), (4.18), and (4.19) for \(\partial^{2} u /\left.\partial y^{2} ight|_{i, j}\).
-
Write the central finite difference formulas of the second order for \(\partial u / \partial x\) and \(\partial^{2} u / \partial x^{2}\) of function \(u(x, y, t)\) at the grid point \(\left(x_{i+1},...
-
In the same way as in Problem 1, compare the performance of the central difference scheme (4.10) and the fourth-order scheme (4.15). Problem 1 Consider the function \(u=\sin x\). Apply the forward...
Study smarter with the SolutionInn App