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erma4kov [3.2K]
3 years ago
8

Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $27

.50 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?
Business
1 answer:
natali 33 [55]3 years ago
4 0

Answer:

5.95%.

Explanation:

Expected dividend (D1) $1.25

Stock price $27.50

Required return 10.5%

Dividend yield 4.55%

Growth rate = rS - D1/P0 = 5.95%.

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Now replay the animation but focus on the orange arrows. what occurs every time an orange arrow is released?
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2 years ago
Answer the following questions using the information below: Cannady produces six products. Under their traditional cost system u
vampirchik [111]

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Given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.

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Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the com
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3 years ago
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