Richard, Inc., will pay a quarterly dividend per share of $1.45 at the end of each...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Richard, Inc., will pay a quarterly dividend per share of $1.45 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.3 percent forever. The appropriate rate of return on the stock is 11 percent, compounded quarterly. What is the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock price Richard, Inc., will pay a quarterly dividend per share of $1.45 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.3 percent forever. The appropriate rate of return on the stock is 11 percent, compounded quarterly. What is the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock price
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Slip Systems had no short-term investments prior to 2015. It had the following transactions involving short-term investments in available-for-sale securities during 2015. Feb. 6 Purchased 3,400...
-
Consider the following terms and definitions: TERMS: 1. Proprietorship 2. Faithful representation 3. Partnership 4. Stock 5. Limited liability 6. Limited Liability Company 7. Cost principle 8. FASB...
-
1. Give examples of needs, wants, and demands of Chick-fil-A customers, differentiating these three concepts. 2. Describe Chick-fil-A in terms of the value it provides customers. How does Chick-fil-A...
-
Logan Corporation loans money to start-up businesses that cant obtain traditional bank loans. The company loans the business money in exchange for a single future payment. Logan Company wants to make...
-
Disclosures related to income taxes for The Coca-Cola Company (Coke) for 20062008 appear in Exhibit 8.11. Required a. Why are Cokes average tax rates so low? b. Is it likely that Coke has recognized...
-
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company's labor standards for one Jogging Mate are as follows: Standard Hours Standard Rate per Hour Standard Cost 24...
-
A. amortization schedule for a $17,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 10% compounded annually. Round all answers to the...
-
Describe the difference between the standard deviation of the population mean and the standard error ofthe sample mean.
-
+ Computerworld is a small retail chain that sells personal computers, peripherals such as printers, software packages, and office supplies. Management of Computerworld is concerned about the loss in...
-
18) Find dw/dt by using the Chain Rule. Express your final answer in terms of t. W =x^2 + xy + y^2, x = e^2t, y = t
-
Brandon Ramirez wants to set up a scholarship at his alma mater.He is willing to invest $344,000 in an account earning 16 percent.What will be the annual scholarship that can be given from this...
-
The Fancy Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 2 5 percent. Assume all sales revenue is...
-
n 1. Consider an offshoring model of trade between the US and Mexico. There are four activities. Any of these activities may be done in the US or Mexico. Using the table below note the differences in...
-
Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year,...
-
Which of the following is not an advantage of transferable pollution rights? a. They create incentives for polluters to develop cheaper ways to reduce pollution. b. They allow the greatest value of...
-
What is the relationship between externalities and property rights?
-
An advantage that corrective taxes and tradable emissions permits have over compliance standards is that the former a. works well even if pollution output cannot be accurately measured. b. results in...
Study smarter with the SolutionInn App