Question: A firm announced an expected dividend next year will be $1.20 per share, and also plan to continue the same dividend amount in up-coming years.

A firm announced an expected dividend next year will be $1.20 per share, and also plan to continue the same dividend amount in up-coming years. The required rate of return of investor is 10 percent. The value of a share of the firms common stock is _____.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

You travel to the planet Estimation as part of an economics expedition. Families are organized as pairs of individuals identified as alphas and betas. You are interested in their wage distributions....

first 3 questions of the last pic need answered. any help would be appreciated! *Update. problem 3d is the main concern! if you could concentrate your effort on this, that would be great! If New...

A firm has an expected dividend next year of $1.20 per share, a 4 percent growth rate of dividends, and a required return of 10 percent. The value of a share of the firm's common stock is

True or False 1) For a given positive interest rate, the future value of $100 increases with the passage of time. Thus, the longer the period of time, the greater the future value. 2) Future value is...

Hopefully this time I could get some right answers You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows: Asset Name Annual Asset Return Probability Beta...

2A) Red Rhinos has no intention of buying back stock or issuing new shares in the future. It pays annual dividends. You expect the dividend next year to be $2.53 per share. The stock is currently...

39 If a firm has class A and class B common stock outstanding, it means that * (1 Point) each class receives a different dividend the par value of each class is different the dividend paid to one of...

A firm has an expected dividend next year of $1.00 per share, a zero growth rate of dividends, and a required return of 10 percent. The value of a share of the firm's common stock is ______. A. $120...

Alghad Corporation has borrowed $10 million from a bank with the understanding that it will pay the loan in semiannual installments for 5 years. The bank charges interest at the rate of 8% annualy....

A firm has an expected dividend next year of $1.20 per share, a zero growth rate of dividends, and a required return of 10 percent. The value of a share of the firm's common stock is ________.

Cinnamic alcohol is used mainly in perfumery, particularly in soaps and cosmetics. Its molecular formula is C9H10 O. (a) Calculate the percent composition by mass of C, H, and O in cinnamic alcohol....

Given the commoditized nature of many markets today, does customer relationship managementand its associated focus on quality, value, and satisfactionmake sense? If price is the only true means of...

A Protective Put is: * Buy a Call Option + hold a long position in the underlying securityBuy a Put Option + hold a long position in the underlying securityWrite a Put Option + hold a long position...

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...