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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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5 0
3 years ago
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Answer:

Please see explanation below.

Explanation:

Knowledge management system is a system that allows sales people have quick and right information about a company's value proposition without having to wait for feedback from team members or someone else in the company. An advantage of knowledge management system is the ability to train many employees remotely or places where they may be needed.

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Other things held constant, if a bond indenture contains a call provision, the yield to maturity that would exist without such a
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