The company Mora stenar AB has just paid a dividend of 2.2 SEK per share. The dividends

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

Question:

The company Mora stenar AB has just paid a dividend of 2.2 SEK per share. The dividends are expected to be the same in perpetuity (so zero growth). The next dividend is payed in one year from now.

Assuming that the company has a return on equity of 10.8 percent, what is an appropriate market price for the stock today?

Related Book For answer-question

Introduction to Data Mining

ISBN: 978-0321321367

1st edition

Authors: Pang-Ning Tan, Michael Steinbach, Vipin Kumar

See More Books

Posted Date: Jan 09, 2021 10:35 AM

See More Questions

Suppose we would like to extract positive and negative itemsets from a data set that contains d items. (a) Consider an approach where we introduce a new variable to represent each negative item. With...
For your marketing class, youd like to take a survey from a sample of all the Catholic Church members in your city to assess the market for a DVD about Pope Franciss first year as pope. A list of...
For your political science class, you'd like to take a survey from a sample of all the Catholic Church members in your city. A list of churches shows 17 Catholic churches within the city limits....
What, if any, product or product line modifications will Outback have to make in the country you chose in order to be successful? Are any changes necessary in the design of the restaurants? Explain...
Find the current yield of New York Community Bancorp (NYB) that reported a dividend of $1.00 and a closing price of $15.99?
Think of a time when you held fast to a decision even after learning that it was probably a wrong or faulty decision. How long did you persist with your original (faulty) decision? Looking back now,...
In a contract dispute between a US company and a Canadian company, the contract itself referred to provisions of the Uniform Commercial Code. Do these references alone preempt the contract from being...
Bracewell Company reported net income of $195,000 for 2014. Bracewell also reported depreciation expense of $40,000 and a gain of $5,000 on disposal of plant assets. The comparative balance sheet...
Rene and Fred work in the same department. They must work together to complete a report on the last day of each month. Rene is working in her cubicle when Fred walks up and starts a conversation. If...
A traffic signal has a 60-second cycle length. For the travel direction of interest, the effective red and green times are 30 seconds each, the arrival rate is constant at 20 vehs/min and the...
On 1 January 20X5, DR purchased a ten-year franchise for $800,000. On 31 December 20X6, DR sold this franchise for $975,000. It incurred selling costs of $15,000. What is the amount of the gain on...
4. Given the following information, find contribution rate: a. Sales price per unit, $18.50, contribution margin, $10.08 b. Sales price per unit. $17.50; variable cost per unit. $6.95 c. Total sales,...
On 30 September 20X6 MC entered into a speculative futures contract to buy 100 ounces of gold on 31 March 20X7 at a price of $1,300 per ounce. MC intends to settle the contract net and will not take...
Use the expanded accounting equation, show and explain each of the components. Does this information balance to the company's balance sheet? What would the entry(entries) be to pay off $13,250 of...
On 31 December 20X0, AB acquired 100% of CD. At that date, CD had a customer list. This customer list had not been recognised as an intangible asset in CD's statement of financial position. However,...
Background: AR Luxury is currently operating in SaudiArabia since the 90s through a franchisee agreement with a local Partner. The Partner is currently managing 5 doors, in two different Malls. The...
Which provision could best be justified as encouraging small business? a. Ordinary loss allowed on $ 1244 stuck. b. Percentage depletion. c. Domestic production activates deductions. d. Interest...
Draw all candidate subgraphs obtained from joining the pair of graphs shown in Figure 7.2. Assume the edge-growing method is used to expand the subgraphs.
Consider the data set shown in Table 7.13. Suppose we are interested in extracting the following association rule: {Î±1 ¤ Age ¤ Î±2, Play Piano = Yes} {Enjoy...
Consider the (relative distance) K-means scheme for outlier detection described in Section 10.5 and the accompanying figure, Figure 10.10. (a) The points at the bottom of the compact cluster shown in...
For the three-room house shown in Figure 7.35, all rooms are perfect squares and have the same dimensions. An air conditioner produces an equal amount of heat flow $q_{\mathrm{ho}}$ out of each...
Figure 7.18 shows a liquid-level system in which two tanks have cross-sectional areas $A_{1}$ and $A_{2}$, respectively. The volume flow rate into tank 1 is $q_{\mathrm{i}}$. A pump is...
Consider the single-tank liquid-level system shown in Figure 7.19, where the volume flow rate into the tank through a pipe is $q_{\mathrm{i}}$. The liquid leaves the tank through an orifice of area...

The company Mora stenar AB has just paid a dividend of 2.2 SEK per share. The dividends

Question:

Expert Answer:

Expected dividend ... View the full answer

Introduction to Data Mining

Students also viewed these accounting questions