Question: please solve this asap thank you Here is a share of stock: The current stock price is $56. The next dividend will be $2.8. The

please solve this asap thank you

Here is a share of stock:

The current stock price is $56.

The next dividend will be $2.8.

The dividends will have a growth rate of 4.2% forever.

What is the required return?

A.

8.6%
B.

9.2%
C.

7.8%
D.

8.2%

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!

Q:

As of 30 April 2011, PLR Corporations accounts payable subsidiary ledger included the following information: PLR completed the following transactions in May 2011: Date Transaction 1...... Paid half...

Q:

1. Here is a share of stock: The current stock price is $56. The next dividend will be $2.8. The dividends will have a growth rate of 4.2% forever. What is the required return? 2. Here is a share of...

Q:

please answer asap! Thank You (Common stock valuation) The common stock of NCP paid $1.50 in dividends last year. Dividends are expected to grow at an annual rate of 8.50 percent for an indefinite...

Q:

please show the steps, try not use the hand writting. thank you. You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow an...

Q:

can someone show me how they reached the answer for both parts please and thank you You are bullish on Telecom stock. The current market price is $10 per share and you have $1,000 or your own to...

Q:

i have attach the question on a word document. please solve as soon as you can. UESTION 1 ABC Enterprises' stock is currently selling for $49.9 per share. The dividend is projected to increase at a...

Q:

A) 7.86% B) 9.43% C) 8.17% D) 4.67% E) 5.90% 133) What is the expected return on a portfolio that is equally weighted between Stocks M and N given the following information? State of Economy...

Q:

Use the extended DuPont equation to provide a summary and overview of your firm?s financial condition. Be sure to do all calculations for 3 years, using Excel. Use real numbers from the financials,...

Q:

Solve Q.5 and Q. 10 only in detail please Please solve complete questions. Thank you so much in advance COBA Corporation (Part A) W. F. Kenner, president and general manager of COBA Corporation paced...

Q:

1.The Starr Co. just paid a dividend of $2.00 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year, indefinitely. Investors require an 12 percent return...

Q:

A firm has a current dividend of $8 per share, and the dividend is expected to grow at 35% for the next five years, after which the growth rate will slow down to 8% per year. If the price of the...

Q:

Evidence that cleavage of 1, 2-diols by HIO 4 occurs through a five-membered cyclic periodate intermediate is based on kinetic data?the measurement of reaction rates. When diols A and B were prepared...

Q:

Consider the following hypothetical aqueous reaction: A (aq) -- flask is charged with 0.065 mol of A in a total volume of 100.0 mL. The following data are collected: (a) Calculate the number of moles...

Q:

Select all that apply Select all of the statements that are true about the Sarbanes - Oxley Act ( SOX ) . ( Check all that apply. ) It enforces high ethical standards in business dealings. It makes...

Q:

Consider the two vectors A with arrow 3 and B with arrow 2. (a) Calculate A with arrow B with arrow 2 Correct Your answer is correct 3 Correct Your answer is correct (b) Calculate A with arrow B with...

Q:

Y, an Australian resident, is the sole shareholder of ABC Pty Ltd, an Australian resident company. In this income year, ABC Pty Ltd made an interest free loan of $100,000 to Y. By the income year...

Q:

Bond Strength Homework Unanswered Arrange the following molecules from least stable (highest or least negative potential energy at the top) to most stable (lowest or most negative potential energy at...

Q:

Suppose that the statement ((PAQ) V R) = (R v S) is false. Find the truth values of P, Q, R, and S. (This can be done without making a big truth table if you don't want to, just explain your...

Q:

Outline two ways to minimise effects of Jamess behaviour that challenges. ( 3 . 2 )

Q:

Within the next three years, is the opposition likely to increase, remain unchanged, or decrease?

Q:

What changes, if any, are projected for this environment?

Q:

How have these groups changed within the last three years?