A stock wont pay dividend for the next 6 years. Beginning in year 7 it will pay
Question:
A stock won’t pay dividend for the next 6 years. Beginning in year 7 it will pay a dividend of $10 forever. If required rate of return is 10%, what is the current price of the stock?
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
Computation of the Current price of the stock Given information Dividend ...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
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
-
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
-
The firms required rate of return is 9 and the firms tax rate is 35 If the asset class is expected to remain open at the end of the project based on NPV analysis. Should the project be undertaken?
-
The Chicago Omni Hotel is a 750-room luxury hotel offering guests the finest facilities in downtown Chicago. The hotel is organized into four departments: lodging, dining, catering, and retail...
-
For the MgO-Al2O3 system, what is the maximum temperature that is possible without the formation of a liquid phase? At what composition or over what range of compositions will this maximum...
-
Suppose you have two infinite straight line charges , a distance d apart, moving along at a constant speed v (Fig. 5.26). How great would v have to be in order for the magnetic attraction to balance...
-
A vibration pickup has been designed for operation above a frequency level of \(100 \mathrm{~Hz}\) without exceeding an error of \(2 \%\). When mounted on a structure vibrating at a frequency of 100...
-
The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Total sales revenue . . . . . . . . . . . . . . . ....
-
An elastic bone is compressed 10 m by a student's weight. The student picks up a very heavy backpack and the same bone compressed by an extra 5 m. (a) How many times heavier or lighter is the student...
-
A market research consultant hired by a leading soft drink company wants to determine the proportion of consumers who favor its low-calorie brand over the leading low-calorie competitor in a...
-
A stock just paid dividend of $2.30. Dividend is expected to grow at 6%. If the required rate of return is 11 percent, what should be the current price of the stock?
-
You bought a zero coupon bond 1 year ago with 20 years to maturity for $89.70. If current interest rate is 6 percent, what was your rate of return for one year?
-
According to Significance (December 2015), the 16th-century mathematician Jerome Cardan was addicted to a gambling game involving tossing three fair dice. One outcome of interest- which Cardan called...
-
Discuss any new developments of the treatment of female-identifying athletes by corporations such as Nike. Have there been any recent instances of discrimination against female-identifying athletes...
-
You have a circular wire loop of radius \(a=0.50 \mathrm{~m}\). It carries a current that increases linearly from 0 to \(4.5 \mathrm{~A}\) in \(0.30 \mathrm{~s}\). At the center of this loop is a...
-
Take a position on the success or failure of the Bucks strike. What are the parameters by which you determined the success or failure of the strike?
-
MLS fans took to social media to post pictures or videos of themselves displaying Iron Front signage in defiance of the Fan Code of Conduct. What role do you think social media played in the decision...
-
Coach Landon Donovan revealed that players intended to display an antibigotry banner during the Phoenix Rising match. If the homophobic slur had not preempted this, what effect would it have had...
-
In which type of projects does risk play a predominant role? What can be done to mitigate the attendant risks? Pick a specific project and discuss.
-
An 8.0 kg crate is pulled 5.0 m up a 30 incline by a rope angled 18 above the incline. The tension in the rope is 120 N, and the crates coefficient of kinetic friction on the incline is 0.25. a. How...
-
A contract that is full of hard-to-read print and hard-to-understand language and that is presented to someone who is not given an opportunity to read it is a. always unenforceable. b. always...
-
Describe two ways in which a house construction company may use job-cost information.
-
Comment on the following statement. In a normal-costing system, the amounts in the Manufacturing Overhead Control account will always equal the amounts in the Manufacturing Overhead Allocated account?
-
Describe three different debit entries to the Work-in-Process Control T-account under normal costing?
-
Balance per bank statement Less: outstanding cheques ARKIN Company Bank reconciliation May 31, 2014 6124 6138 6139 6140 add: deposit in transit 2125 932,65 30928,46 960,57 1420 5438,22 25490,24...
-
Company "A" is a manufacturer of wooden and metal structures (20XX) Costs 1. Consumable supplies in the factory warehouse 2. Sandpaper 3. Lubricants 4. Indirect costs: wages 5. Wages of production...
-
Write down at leastfive items (durable goods, not food) that you purchase and their sourcing (where each is from). For example, a shirt may be assembled in China, designed in the US, and made from...
Study smarter with the SolutionInn App