A stock will pay a yearly dividend of $ 1 . 8 , expected to grow by

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

Question:

A stock will pay a yearly dividend of $

1.8,

expected to grow by

3.3 %

per year forever. If the stock is currently priced at $

45,

what is the prevailing market rate of return?

Related Book For answer-question

Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

See More Books

Posted Date: Apr 30, 2024 02:03 AM

See More Questions

CoursHeroTranscribedText: A 5-year loan in the amount of $48,000 is to be repaid in equal annual payments. What is the remaining principal balance after the third payment if the interest rate is 5...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
A professional hockey player is offered a 5-year contract in which the player receives a $6 million signing bonus today and a quarterly salary starting at $1.2 million paid at the end of the first...
Davis Company opened a Web page design business on January 1 of the current year. The following information relates to Davis Companys operations during the current year: 1. On February 1, Davis...
A R-12 heat pump cycle shown in Fig. P6.71 has a R-12 flow rate of 0.05 kg/s with 4 kW into the compressor. The following data are given Calculate the heat transfer from the compressor, the heat...
(a) How might the confirmation tendency affect your client acceptance decision? (b) How might the overconfidence tendency come into play in your client acceptance decision? (c) How might an auditor...
What are the likely effects of the increasing size and power of multinational corporations on world politics? Will the enormous power of these corporations result in a more homogenous world?
1. Do Exercise 17- 24 using the FIFO method. In Exercise 17-24, Tomlinson Corporation is a biotech company based in Milpitas. It makes a cancer-treatment drug in a single processing department....
You are a Supervisor in the OperationsDepartment for XYZ company. You manage 50 employees in the department. Each week, employees are tasked with submitting reports. Recently, there have been many...
Jenna is a single taxpayer. During 2 0 1 8 , she earned wages of $ 1 3 5 , 0 0 0 . She doesn't itemize deductions, so she will take the standard deduction to calculate 2 0 1 8 taxable income. In...
A plane is flying at an altitude of 10,000 meters and a speed of $810 \mathrm{~km} / \mathrm{hr}$. The fuselage of the plane can be considered a cylinder of diameter $4 \mathrm{~m}$ and length...
A giant submarine needs to travel great distances to reach destinations. The submarine can be modeled as a cylinder with a radius of $7 \mathrm{~m}$, a length of $50 \mathrm{~m}$, and a weight of...
What characteristics of a spherical particle are required for its terminal velocity in air at $25^{\circ} \mathrm{C}$ to just enter the turbulent regime, $R e_{d}=R e_{d c}$ ?
Golf balls have had dimples in them for well over a century after it was first discovered that dimpled balls could be driven farther. Now we know that the dimples trip up the boundary layer and...
A sailboard is gliding across a lake at a speed of $20 \mathrm{mph}(9 \mathrm{~m} / \mathrm{s})$. The sailboard is $3 \mathrm{~m}$ long, $0.75 \mathrm{~m}$ wide and represents a smooth, flat...
The U.S. federal government definition of poverty is the same in all communities around the country. Is this appropriate? Why or why not?
What exactly is a prima facie duty? How does an ethic of prima facie duties differ from monistic and absolutist ethical theories?
The hydrodynamic boundary layer equations consist of one momentum equation and the continuity equation. How does one solve for the pressure?
How does the hydrodynamic boundary layer thickness depend upon the Reynolds number?
If the liquid has a high thermal conductivity, the heat transfer coefficient depends on $\mathrm{Pr}^{1 / 2}$. What is the root cause of the increase dependence on $\mathrm{Pr}$ ?

A stock will pay a yearly dividend of $ 1 . 8 , expected to grow by

Question:

Expert Answer:

To find the prevailing market rate of return we can us... View the full answer

Fundamentals Of Corporate Finance

Students also viewed these finance questions