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beks73 [17]
3 years ago
6

Nu-Tek is expanding rapidly. As a result, the company expects to pay annual dividends of $.62, .80, and $1.05 per share over the

next three years, respectively. After that, the dividend is projected to increase by 4 percent annually. What is the current value of this stock if the required return is 16 percent? 1. $7.63 2. $9.67 3. $10.46 4. $6.58 5. $8.49
Business
1 answer:
MrRa [10]3 years ago
8 0

Answer:

1) $7.63

Explanation:

we must can determine the price of the stock by calculating the present value of the cash flows (dividends):

present value = $0.62/1.16 + $0.80/1.16² + $1.05/1.16³ + [($1.05 x 1.04)/ (16% - 4%)] = $0.53 + $0.59 + $0.67 + $9.10/1.16³ = $0.53 + $0.59 + $0.67 + $5.83 = $7.63

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Lana71 [14]

The correct alternative is letter C. Inflation control. This is the first strategy to control the currency in the economy, being one of the main objectives of monetary policy in a country.

<h3 /><h3>What is monetary policy?</h3>

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8 0
1 year ago
Magazines and journals are examples of periodical resources. True False
mylen [45]
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8 0
3 years ago
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You own a $36,800 portfolio that is invested in Stocks A and B. The portfolio beta is equal to the market beta. Stock A has an e
madam [21]

Answer:

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8 0
3 years ago
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