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maksim [4K]
3 years ago
6

: Management of ProCor, a biotech firm, forecasted the following growth rates for the next three years: 35 percent, 28 percent,

and 22 percent. Management then expects the company to grow at a constant rate of 9 percent forever. The company paid a dividend of $1.75 last week. If the required rate of return is 20 percent, what is the value of this stock?
Business
1 answer:
miss Akunina [59]3 years ago
7 0

Answer:

$21.45

Explanation:

Current year dividend = $1.75

Next year growth rate = 35%

Next year dividend = $1.75 × 135%

                                = $2.36

Value of this stock = D1 ÷ (K-g)

where,

D1 = Next year dividend

k = required return

g = expected growth rate

Therefore,

                               = 2.36 ÷ [(20 - 35)%]

                               = $21.45

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Correct option: 44 Percent

Inflation rate is general rise in the price of goods and services. Inflation rate can be calculated by calculating the percentage difference in consumer price index.

Inflation rate = \frac{CPI1_{1}-CPI_{0}}{CPI_{10}}

Inflation Rate =\frac{180-125}{125}                        =\frac{55}{125}                        =44 percent

Therefore, Inflation rate would be 44%.

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3 years ago
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Answer:

they call their Federal Reserve District Bank, which delivers the requested amount.

Explanation:

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3 years ago
What would be the average tax rate for a person who paid taxes of $8,016.30 on a taxable income of $63,220? (Enter your answer a
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3 years ago
Dividends to common stockholders are
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Interest paid to the share holder of a specific company that offers a dividend. (note: not all companies pay dividends).
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Under the _____, success is usually measured by how well companies achieve recruitment, promotion, and retention goals for women
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Answer:

A, discrimination and fairness paradigm

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Discrimination and fairness paradigm is a model for ensuring that equal opportunities, fairness, employment of underrepresented groups, etc are one of the ways of measuring the success of an organization.

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Cheers.

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3 years ago
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