1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vovikov84 [41]
3 years ago
13

The last dividend (D0) is $1.80, the growth rate (g) is 6%, and the required rate of return (r) is 12%. What is the stock price

according to the constant growth dividend model
Business
1 answer:
jekas [21]3 years ago
7 0

Answer:

Price = $31.8  

Explanation:

The formula for constant growth dividend model is:

  Price =  <u>D1</u>

               r-g

Or

  Price = <u>D0 (1+g)</u>

                   r-g

where,

D0 = Last Dividend Paid

r = required rate of return

g = growth rate

Substitute the values now in the formula according:

   Price =   <u>1.80 (1+0.06)</u>

                     0.12-0.06

   Price =  <u>1.908</u>

                  0.06

   Price = $31.8

You might be interested in
Sam, a citizen of Tennessee, files a suit in a Tennessee state court against United Sales Corporation, a Wyoming company that do
trasher [3.6K]

Answer: .The correct answer is a). the case is being heard for the first time.

Explanation: A court has original jurisdiction over a case when a case is being heard for the first time.

This cases are heard directly without any intermediary or appellate review.

8 0
4 years ago
Read 2 more answers
Explain the difference between at least four different post-secondary options, and provide an example of one possible career cho
vekshin1
Postsecondary education refers to those whose highest level of educational attainment is an apprenticeship or trades certificate or diploma (including 'centres de formation professionnelle'); college, CEGEP or other non-university certificate or diploma; university certificate or diploma below bachelor level. <span>Examples of </span>institutions<span> that provide </span>post-secondary<span> education are vocational </span>schools<span>, community colleges, independent colleges (e.g. institutes of technology), and universities in the United States, the institutes of technical and further education in Australia, pre-university colleges in Quebec, and the IEK</span>
3 0
4 years ago
The types of problems the mne confronts when determining the need for training of its local workforces include determining who s
lukranit [14]
The correct answer is all of the above. Multinational corporations grapple with a diversity of challenges when choosing training programs for their employees. These include choosing a program that is sensitive to the local culture and how to reconcile it with the global nature of the corporation. This also introduces the challenge of who should conduct the training.
8 0
3 years ago
Read 2 more answers
If one-year nominal interest rate in the U.S. is 3%, while the one-year nominal interest rate in Australia is 5%. The spot rate
Mariana [72]

Answer:

to get 5,00,000 australian dollar at the forward rate we are goign to need 4,704,000 US dollars

Explanation:

spot x (1 + (US rate - Australia rate) x time)

0.96 x (1+(0.03-0.05)x1 year) =

0.96 x 0.98 = 0.9408 forward exchange rate

$5,000,000 Australian Dollar * 0.9408 = 4,704,000 US dollars

3 0
3 years ago
Why is 'task complexity' an issue in the process of goal setting?
likoan [24]

The more complex the task the more difficult it is to reach goals. People are more likely to achieve goals when tasks are easier. Simplifying tasks can help goal setting.

4 0
3 years ago
Other questions:
  • Wilson is currently operating at maximum capacity. The firm has a net income of $2,250, total assets of $24,600, long-term debt
    14·1 answer
  • The following stock transactions were completed by the executive vice president of Vinco, Inc., a publicly traded corporation: J
    6·1 answer
  • If you are accused of a criminal act, you can substantially lower your legal costs by _____.
    12·2 answers
  • 5. When increased raw material costs increase prices for consumers, the situation is known as _______ inflation.
    9·2 answers
  • The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2019.
    12·1 answer
  • What are the macroeconomic conditions affecting the IT industry? Select "yes" for those statements that are accurate and choose
    6·1 answer
  • Which general staff member directs all responses and tactical actions.
    13·1 answer
  • Labor rates have risen over time to the point that Antonio's Pasta is considering _____ to reduce costs.
    9·1 answer
  • The Department of Labor’s Occupational Outlook Handbook is relatively expensive and not available for use by the general public.
    9·1 answer
  • When an employee works in year 1 but is paid in year 2, the company must recognize an expense in years) ______.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!