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Lostsunrise [7]
3 years ago
9

Assume that shareholder's required rate of return (r) is 9%. Dr. Pepper is expected to pay a dividend of $2.00 per share (D1) ne

xt year. Moreover, investors expect dividends to grow at a constant rate of 4% per year (g). According to the Dividend Discount Model, what should be the current price per share of Dr. Pepper?
Business
1 answer:
Juli2301 [7.4K]3 years ago
3 0

Answer:

P=$40

Explanation:

We will apply constant dividend growth model that is =P = D1 / ( k-g )

P is the price of share  ?

D1 is the current divided  $2

k is the rate of return       9%

G is the constant growth  4%

P=2/(9%-4%)

P=$40

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kicyunya [14]

The inventory turnover ratio is 13.71

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7 0
1 year ago
Green, Inc., provides group term life insurance for all of its employees. The coverage equals twice the employee's annual salary
Korvikt [17]
Same is broke so she needs $10,000 to pay her taxes
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Which of the following statements are true about recession?
timofeeve [1]

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c. During a recession, the rate of change in government spending tends to increase, which leads to an increase in the real GDP.

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