ABC, Inc. pays a dividend of $1.77 per year infinitely. If the required rate of return on

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

Question:

ABC, Inc. pays a dividend of $1.77 per year infinitely. If the required rate of return on ABC's stock is 17.39% per year, what is today's price of the stock?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

Related Book For answer-question

Introduction to Finance Markets Investments and Financial Management

ISBN: 978-1118492673

15th edition

Authors: Melicher Ronald, Norton Edgar

See More Books

Posted Date: Oct 26, 2022 03:17 AM

See More Questions

What is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 7% of par, and a current market price of? (a) $30, (b) $40, (c) $50, (d) $70 (Assume the...
What two components make up the required rate of return on common stock?
What is the role that the required rate of return plays in the NPV model? In the IRR model?
Write a short email to your instructor, discussing what you believe are your greatest strengths and weaknesses from an employment perspective. Next, explain how these strengths and weaknesses would...
Name and describe the components of organizational culture.
Let $w_{1}(x), w_{2}(x), w_{3}(x), w_{4}(x)$ be linearly independent polynomials of degree four or less that satisfy the geometric boundary conditions for a bar fixed at $x=0$ and attached to a...
Find the complex form of the Fourier series for the wave shown in Fig. 14.24(b). Figure 14.24(b):- 1 (b) Ox- 0 (1).x
State whether the following provisions in a note impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word...
Suppose you purchase a 48 piece of plywood from Home Depot. You don't have a pickup truck (nor does your friend), but you do have a roof rack with cross bars on your car. So you will have to secure...
Three different analytic studies by three experienced and highly respected groups of researchers yielded three similar but somewhat different results. Do you believe that the results of these studies...
Supposons que l'IPC actuel est 400 et qu'il tait 100 en 1969. Dans ce cas, $100 d'achats aujourd'hui correspond combien de dollars en achats en 1969? a. $25 b. $40 c. $60 d. $400
A plastic rod of length d = 1.5 m lies along the x -axis with its midpoint at the origin. The rod carries a uniform linear charge density = 4.5 nC/m. The point P is located on the postive y -axis at...
You are asked to design a cylindrical steel rod 60.0 cm long, with a circular cross section, that will conduct 140.0 J/s from a furnace at 420.0 C to a container of boiling water under 1 atmosphere...
A cargo plane is moving with a horizontal velocity of 232 m/s and a height of 860 m above level ground when it releases a package ignoring air resistance. How much time in seconds will it take the...
An electron that is moving through a uniform magnetic field has a velocity v = (66 km/s ) i + 49 km/s ) j when it experiences a force F = (-3.80010 -15 N ) i + (4.59610 -15 N ) j due to the magnetic...
An electron is accelerated from rest by a potential difference of 390 V . It then enters a uniform magnetic field of magnitude 180 mT with its velocity perpendicular to the field. Calculate the speed...
A restaurant at a popular Colorado casino provides priority service to player's card holders. The restaurant has 10 tables or booths where customers may be seated. The service time (time a booth or...
How has the globalization of firms affected the diversity of their employees? Why has increased diversity put an additional burden on accounting systems?
Describe the recent levels of savings rates in the United States.
What are debit cards and how are they used?
Using the income statements from the Mount Lewis Copy Centers for 2013 and 2014 in Problem 17, find the percentage change in sales, EBIT, and net income. Use them to compute the degree of operating...
The amount of bacteria in raw milk Ratings of teachers determine whether the data are discrete or continuous.
Consider the Profit/Loss problem presented in problem 3. a. Use Goal Seek to determine the access price per copy that the publisher must charge to break even with a demand of 3,500 copies. b....
Californian Vinh Nguyen won the Powerball Jackpot and was the sole winner. The jackpot was $228,467,735. Nguyen had the option of taking a lump sum of $134 million or an annuity that paid 30 annual...

ABC, Inc. pays a dividend of $1.77 per year infinitely. If the required rate of return on

Question:

Expert Answer:

Step 12 Given information Dividend per year 177 The required rate of return 1739 To Find Pr... View the full answer

Introduction to Finance Markets Investments and Financial Management

Students also viewed these accounting questions