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Tasya [4]
2 years ago
11

White Wedding Corporation will pay a $2.65 per share dividend one year from today. The company pledges to increase its dividend

by 4.75 percent per year, indefinitely. If you require a return of 11 percent on your investment, how much will you pay for the company's stock today
Business
1 answer:
bezimeni [28]2 years ago
8 0

The amount I will pay for the company's stock today is $42.40.

<h3>How much would I pay for the company's stock?</h3>

The amount I would pay for the company's stock is dependent on the value of the stock. The value of the stock can be determined using the Gordon growth model.

According to the Gordon growth model, the value of a stock is a factor of its dividend, growth rate and the rate of return.

Value of a stock = next year dividend / (rate of return - growth rate)

$2.65 / (11 - 4.75%)

$2.65 / 6.25%

$2.65 / 0.0625 = $42.40

To learn more about how to determine the value of a stock, please check: brainly.com/question/15710204

#SPJ1

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Answer:

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5 0
2 years ago
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kiruha [24]

Answer:

a. 1.5  and 1.8

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6 0
3 years ago
If you were to start a business, which ownership form would you choose? What factors might affect your choice?
Ivenika [448]

Answer:

If I were to start a business, I will choose Sole Proprietorship.

Explanation:

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* I can make all the decisions by myself, without the interference of any other person.

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8 0
3 years ago
What is a beneficiary? Question 50 options: The person who files insurance claims on your behalf The person who determines wheth
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6 0
3 years ago
The Chinese government chooses to control the value of its currency so that it is consistently worth some fixed amount of U.S. d
Vadim26 [7]

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This is the type of exchange rate used by the Chinese government in the question above.

8 0
3 years ago
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