You have just purchased a share of stock for $20.83. The company is expected to pay...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You have just purchased a share of stock for $20.83. The company is expected to pay a dividend of $0.63 per share in exactly one year. If you want to earn a 10.5% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $ (Round to the nearest cent.) You have just purchased a share of stock for $20.83. The company is expected to pay a dividend of $0.63 per share in exactly one year. If you want to earn a 10.5% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend? The price one year from now should be $ (Round to the nearest cent.)
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Read each case carefully and, as determined in the Internal Revenue Code of Puerto Rico, identify the deductions, calculate the amount of deductions and what the determined contribution would be. and...
-
Draw resonance forms for the purple anion obtained by reaction of ninhydrin with an a-amino acid.
-
What is the balance in the Accounts Payable account on the trial balance?
-
How are changes in the current liability accounts related to the amount of cash available to the company?
-
On January 1, Flory Company issued $300,000, 8%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1. Instructions Prepare journal entries to record the following...
-
13. (1 point) A manufacture has been selling 1700 television ets a week at 480 each. A market survey indicates that for each 27 rebate offered to a buyer, the number of sets sold will ncrease by 270...
-
Other adjustments for final accounts 259 27.9A T Morgan, a sole trader, extracted the following trial balance from his books at the close of business on 31 March 19X9: Dr Cr Purchases and sales Stock...
-
would mary be justified in ignoring this situation particularly since she is not the purchasing agent? in preparing your answer consider the standards of purchasing practice
-
Consider a 6-month European put option with strike price of $2050 on a stock index if the current index value is $2000. The dividends paid by the stock included in the index can be approximated by a...
-
Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1,900 units of Basic Product and 1,500 units of Deluxe Product. The company has traditionally...
-
The rent on an apartment you like is $1700 per month. The monthly mortgage payment for a house you like would be $1900, of which approximately $1600 would go toward interest. Decide whether your...
-
1.Discuss the changes that have been made by the Government to strengthen the Malaysian Financial Markets during the pandemic period. You may share the specific steps taken by the Securities...
-
Provide a 65 word response to the following; The passenger data is normally distributed. The descriptive analysis was completed. I developed a histogram to visually interpet the data set. I tested...
-
Show that the peak of the black body spectrum as a function of ? is given by eq. (22.14) kg T Wmax = 2.82
-
Application of materials handling costs A manufacturing company budgets the follow- ing costs for its materials handling operations: The company estimates that during the coming year, the materials...
-
Journal entries for payroll and payroll costs Arbocodiel Company employs five office employees whose monthly pay is as follows: In addition to the above salaries, Arnold earned a $300 bonus and...
-
Payroll and payroll costs Following are the August payroll data for Sabul Company: The FICA tax rate on employees and employers is 7 percent of pay. Workers' compensation is .06 percent. Only $11,000...
Study smarter with the SolutionInn App