1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
My name is Ann [436]
3 years ago
8

Dragon express inc. just paid a $1.57 dividend and investors expect that dividend to grow by 5% each year forever. if the requir

ed return on the stock investment is 14%, what should be the price of the stock today.
a. $11.21
b. $17.44
c. $25.37
d. $18.32
Business
1 answer:
Elena-2011 [213]3 years ago
6 0

To solve this problem, we will use a valuation method named income valuation includes discounting of the profits the stock will carry to the stockholder in the probable future, and a final value on disposal.

Solution:

1.57 (1.05) / (.14 - .05)

= 18.32. the answer is letter d.

<span> </span>

You might be interested in
What is term structure of interest rate?​
zvonat [6]
Essentially, term structure of interest rates is the relationship between interest rates or bond yields and different terms or maturities. ... The term structure of interest rates reflects the expectations of market participants about future changes in interest rates and their assessment of monetary policy conditions.
3 0
3 years ago
Read 2 more answers
What is an ethical dilemma
Anna007 [38]
An ethical dilemma is a complex situation that often involves an apparent mental conflict between moral imperatives, in which to obey one would result in transgressing another.
4 0
3 years ago
Forecast the 2019 Cost of goods sold on the previous year’s number and the assumptions
AleksAgata [21]

The cost of goods sold based on the sales revenue in 2019 is $32,400

What is the cost of goods sold?

The cost of goods sold is the cost of the goods sold in a particular year, it is determine as the sales revenue minus the gross margin in dollar terms.

We need to first of all determine the sales revenue in 2019 based on 2018 sales revenue and the 2019 growth rate of 8%

2019 sales revenue=50,000*(1+8%)

2019 sales revenue=$54,000

Now the gross margin is 40% of sales revenue

cost of goods sold=sales revenue-gross margin

cost of goods sold=$54,000-(40%*$54,000)

cost of goods sold=$32,400

Find out more about cost of goods sold:brainly.com/question/27917613

#SPJ1

3 0
2 years ago
11. If you were a new investor who wanted to invest in stock, would you prefer to invest in registered public stock, or unregist
Reil [10]
I would rather invest in an unregistered private stock cause it private an not know to other people
8 0
3 years ago
Read 2 more answers
Which of the following is a drawback of a push strategy?
Gnom [1K]

Answer:

i think it would most like;y be c

Explanation:

3 0
3 years ago
Other questions:
  • You have taken a job as an entry-level analyst, and your boss has asked you to find the expected value of Adams Furniture’s stoc
    9·1 answer
  • Aide Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $17,810,000 Net
    11·1 answer
  • The funds used to purchase capital goods are called
    7·1 answer
  • Which of the following will increase the supply of laptop computers? Choose one or more: A. The price of laptop computers rises.
    6·1 answer
  • Diana Mark is the president of ServicePro, Inc., a company that provides temporary employees for not-for-profit companies. Servi
    10·1 answer
  • Neue Inc reports net income of $500,000; during the year, the company declared $100,000 in preferred stock dividends and had an
    14·1 answer
  • PLSSSSSS I NEED THIS ASAP
    7·2 answers
  • DG Loans, a mortgage lender, was charged with a discrimination lawsuit. It alleged that the company was offering loans at higher
    11·1 answer
  • Balance sheet is a statement of what?​
    13·1 answer
  • What are the two serious problems of traditionalist account?​
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!