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Fittoniya [83]
3 years ago
7

Gamma Corp. is expected to pay the following dividends over the next four years: $5, $12, $18, and $1.80. Afterward, the company

pledges to maintain a constant 4 percent growth rate in dividends, forever. If the required return on the stock is 14 percent, what is the current share price?
Business
1 answer:
Vikentia [17]3 years ago
5 0

Answer:

The current share price is  $37.49(appx)

Explanation:

Consider the following calculations

current share price

= 5/(1+0.14) +12/(1+0.14)^2 + 18/(1+0.14)^3+1.8/(1.0.14)^4+1.8/(0.14-0.04)*(1+0.14)^4

=4.386+9.233+12.15+1.065+10.657

=$37.49 (appx)

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The correct option is (a) sales; average book value of fixed assets.

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Answer:

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3 years ago
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THE TASK: Re-write this letter, correctly understanding its purpose, by following the writing process and the 7 C’s, you have st
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Answer:

                                                                  Wedding Clothings Inc.,

                                                                  232 Wasington Drive,

                                                                  Tennessee State,

                                                                   United States of America.

33 Georgia county,

New York City.

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For: Wedding Clothings Inc.

Explanation:

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