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torisob [31]
3 years ago
15

What is the price of a share of common stock that has an expected dividend of $3.00, a tax rate of 30%, a required return of 15%

, an expected growth rate of 5%, and a beta of 2.0?A. $6.00B. $3.00C. $30.00D. $15.00
Business
1 answer:
Semmy [17]3 years ago
3 0

Answer:

Current price of the share common stock will be $30

So option (c) will be correct answer

Explanation:

We have given expected dividend D_1=$3

Required rate of return = 15 % = 0.15

Tax rate = 30 %

Growth rate = 5 %

Beta = 2

We have to find the price of the share

Price of the share is given by p_0=\frac{D_1}{R_E-g}=\frac{3}{0.15-0.05}=$30

So current price of the share stock will be equal to $30

So option (C) will be correct answer

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<h3><u>Full question:</u></h3>

Which of the following has the biggest impact on consumer goods during war times?

a. Consumers deferring purchases in hopes of a better deal

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c. Low inflation

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<u>Answer:</u>

The biggest impact on consumer goods during war times was High inflation

<u>Explanation:</u>

Inflation raised during or as an immediate outcome of these struggles of stock markets endured dull subsequent termination of the war. The government demanded to execute price and wage restrictions in acknowledgment of inflation which had risen due to the extra inducement that was generated by government spending.

Distinctly, both using and financing continued building subsequent the war; nevertheless, the growth was beneath the course rate before the war.  Prices, influenced by the rate of inflation, commonly affect consumer spending on goods significantly.

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Answer:

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Conversion Equivalent Units

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When resources are scarce, a country's decision to focus on producing a specific good is also heavily influenced by its comparative advantage. Comparative advantage is based on the idea of opportunity cost, whereas absolute advantage refers to the superior production capabilities of one nation over another.

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