Question: What is the formula used in the question below? Please explain step by step. Question: Last year, Timco paid 10 million in dividends. Historically they

What is the formula used in the question below? Please explain step by step.

Question:

Last year, Timco paid 10 million in dividends. Historically they have made the dividends grow at about 4% per year. What should the total dividend be next year?

Answer:

10*(1+.04)=10.4. Hopefully you have connected this idea to the assumption used in the Gordon Growth Model we used to price stocks.

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:

Golden Eagle Company has the following balances at the end of November: The following information is known for the month of December: 1. Purchases of supplies for cash during December were $2.500....

Q:

PLEASE ANSWER QUESTION FULLY. please explain step by step and the formulas used to solve. please explain when and how claculator is used during process thank you 3. Dominion Energy, Inc (D) trades on...

Q:

could you assist me in completing this pass paper please MGMT2023 Financial Management 1- Final Exam of Semester 2, 2014 Study Guide Exam format & instructions 1) The Final Exam will be 2 hours and...

Q:

could you assist me in completing this pass paper please MGMT2023 Financial Management 1- Final Exam of Semester 2, 2014 Study Guide Exam format & instructions 1) The Final Exam will be 2 hours and...

Q:

Hello Sir, Could you please assist this project urgently. I have to submit it by sunday. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x Annual Report Pursuant to...

Q:

Hello Sir, Could you please assist this project urgently. I have to submit it by sunday. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x Annual Report Pursuant to...

Q:

need B, C, D (1&2) , H, I, L, M, N, O, & P thanks Mini Case During the last few years, Jana Industries has been too constrained by the high cost of capital to make many capital investments. Recently,...

Q:

Illinois Bio Technologies (IBTECH) was founded in Rosemont, Illinois, in 1992 by Kelly O'Brien, David Roberts, and Barbara Smalley. O'Brien and Roberts, both MDs, were on the research faculty at the...

Q:

Stock Returns and Variance Estimating stock returns, variance and standard deviation. Problem 1: You bought 100 shares of Starbucks Corp. (SBUX) 7 years ago (1 Aug 95) for $5.00 per share and sold...

Q:

Illinois Bio Technologies Illinois Bio Technologies (IBTECH) was founded in Rosemont, Illinois, in 1992 by Kelly O'Brien, David Roberts, and Barbara Smalley. O'Brien and Roberts, both MDs, were on...

Q:

Illinois Bio Technologies (IBTECH) was founded in Rosemont, Illinois, in 1992 by Kelly O'Brien, David Roberts, and Barbara Smalley. O'Brien and Roberts, both MDs, were on the research faculty at the...

Q:

Refer to the study described in Exercise 14.8. Use Tukeys W procedure to identify sig-nificant differences in the means. a. Use Tukeys W procedure to identify significant differences in the mean...

Q:

When bowling, your physics buddy asks how much impulse is needed to stop a 10-kg bowling ball moving at 6 m/s. What is your answer?

Q:

Determine the following limit , using or - when appropriate, or state that it does not exist. lim x 5 x 2 - 6 x 8 x - 5 Select the correct choice below and, if necessary, fill in the answer box to...

Q:

2. Let f(x) = sin r. (a) Hermite interpolating polynomial to approximate f(0.34) = sin 0.34. Use the following values and five-digit rounding arithmetic to construct the r| f(x) f'(x) 0.30 0.29552...

Q:

Q-6 The j.p.d.f of two continuous random variable, x and y are given by f(x.y)= x2 + (xy/3), OsxsI , Osys2 Calculate a) Var(x) b) Var(y) c) Cov(x,y) d) Correlation coefficient of X and Y

Q:

Write Any Self Composed Poem on any Topic ?

Q:

How do societies create effective and resilient institutions, such as governments? Don\'t copy from Google and don\'t write answers in paper, please otherwise I wont accept the answer

Q:

In ms word by default on which page is the header and footer printed Brief explanation 1)O a. on first page 2) O b. on alternate page 3) O c. on every page 4) O d. none of the above

Q:

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

Q:

Is building networks the only way to coordinate and integrate knowledge for value generation from information systems?

Q:

Which among the three types of organizing logics is the most salient for generating value from information systems?

Q:

How does social media alter the communication and strategizing in organizations?